Question

Please help me with my economics homework?

20. Market for Telephone Calls Anna is separated from her boyfriend, John, while she studies economics and he goes to art school. The government thinks that Flash Telecommunications, Anna's phone company, needs subsidization, so a price floor4 is instituted at $16 per minute Price per minute (S) Quantity Supplied per Month 28 12 Price per Minute Quantity Demanded per Month 14 $18 12 28 Use the data in the table above to draw the linear supply and demand curves and show the effect of a price floor 1.) Using the line drawing tool, draw Anna's demand curve and the supply curve she faces. Properly label both lines. 2.) Using the line drawing tool, draw the price floor at a price of $16. Label the line Floor 12 16 20 24 28 32 36 40 Quantity pei month 3.) Using the point drawing tool, indicate the quantity demanded at the price floor Label the point 'P 4.) Using the point drawing tool, indicate the quantity supplied at the price floor Label the point 'P2 Carefully follow the instructions above and only draw the required objects. The amount of the surplus is equal to the quantity supplied at a price of $16 minus the quantity demanded at $16 The amount of excess supply is

Answer 1

We know equation of a line passing through 2 points (x1,y1) and (x2,y2) is

y-y1= y2-y1/x2-x1 (x-x1) .Use it to find equation of demand curve and supply curve..

Step by step solution is provided in the pics attached here.

If you have any doubt,feel free to ask.

Don't forget to thumbs up if you like the explanation.