Let the supply and demand for coffee be given by the following schedule.

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Let the supply and demand for coffee be given by the following schedule.

P 3 4 5 6 7 8 9 10 11

Q_S100 200 300 400 500 600 700 800 900

Q_D 900 800 700 600 500 400 300 200 100

After heavy lobbying by coffee-addicted econ instructors, the government decides to impose a price ceiling on coffee at $5. [All answers are integers, no units. I recommend drawing a graph to help answer these questions.]

What quantity of coffee is efficient?

What quantity will be traded with the price ceiling?

Assume that coffee is rationed by waiting in line. If all buyers have a value of time equal to $0.20 per minute, how long will they need to wait in line to get coffee (in minutes)?

What would consumer surplus be with no price ceiling? (Remember, to consider the width of the rectangles....)

What will consumer surplus be with the price ceiling?

What is the total cost of waiting in line?

business economics

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Let the supply and demand for coffee be given by the following schedule.

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