What is the equilibrium quantity and equilibrium price for the following demand and supply curves:
QD=5800-6p and QS= 4P-120
Calculate consumer and producer surplus in this market.
If a price floor of $600 is placed on this good, what is the new equilibrium price and quantity? Calculate the amount of any shortage or surplus. What is the change in consumer surplus?
If a price ceiling of $500 instead of a price floor were placed on this good, what is the new equilibrium price and quantity? Calculate the amount of any shortage or surplus. What is the change in producer surplus?