Te 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75...

Question

Question

Answer 1

Answer #1

Q1

Answer

A price floor is a minimum price a producer gets and it is effective if it is above equilibrium.

the market is in equilibrium at Qd=Qs

Where

P=$4

As the price is above equilibrium so the Qd<Qs

Qd=40 and Qs=55

surplus =Qs-Qd=55-40=15 units

Option a

=======

Q2

Answer

Option a

The supply curve shifts upward by the amount of the tax.

Answer 2

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