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Calculating Exercises
Calculating Exercises
1. A market has the demand function and the supply function as follows:
Qd = -P + 15
Qs = 2P + 6
a. Determine equilibrium price and equilibrium quantity
b. If the government imposes a price ceiling of $7, does a shortage or
surplus (or neither) develop? What are the price, quantity supplied,
quantity demanded, and size of the shortage or surplus?
c. If the government imposes a price floor of $7, does a shortage or surplus
(or neither) develop? What are the price, quantity supplied, quantity
demanded, and size of the shortage or surplus?
2. A market has the demand function and the supply function as follows:
Qd = -2P + 5
Qs = P + 2
a. Determine equilibrium price and equilibrium quantity
b. If the government imposes a price floor of $2, does a shortage or surplus
(or neither) develop? What are the price, quantity supplied, quantity
demanded, and size of the shortage or surplus?
c. If the government imposes a price ceiling of $2, does a shortage or
surplus (or neither) develop? What are the price, quantity supplied,
quantity demanded, and size of the shortage or surplus?
3. A market has the demand function and the supply function as follows:
Qd = -3P + 6
Qs = 2P + 1
a. Determine equilibrium price and equilibrium quantity
b. If the government imposes a price ceiling of $3, does a shortage or
surplus (or neither) develop? What are the price, quantity supplied,
quantity demanded, and size of the shortage or surplus?
4. A market has the demand function and the supply function as follows:
Qd = -3P + 35
Qs = 2P + 3
a. Determine equilibrium price and equilibrium quantity
b. If the government imposes a price floor of $5, does a shortage or surplus
(or neither) develop? What are the price, quantity supplied, quantity
demanded, and size of the shortage or surplus?
5. A market has the demand function and the supply function as follows:
Qd = -2P + 30
Qs = P + 12
a. Determine equilibrium price and equilibrium quantity
b. If the government imposes a price ceiling of $5, does a shortage or
surplus (or neither) develop? What are the price, quantity supplied,
quantity demanded, and size of the shortage or surplus?