Question

Question 11 1 pts The conditions of demand and supply are given in the table below. What is the equilibrium quantity? Price Qd Qs $1.60 9,000 5,000 $2.00 8,500 5,500 $2.40 8.000 6,400 $2.80 7.500 7,500 $3.20 7,000 9,000 $3.60 6,500 11,000 $4.00 6,000 15,000 o 7.000 6,400 7.500

Answer 1

Q11
Answer
the equilibrium is at Qd=Qs
where
P=2.8 and Q=7500 units
Option 3
7500 units
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Q12
Answer
A price ceiling is a maximum price a producer can charge and it is effective if it is below the equilibrium price. It is below equilibrium price from the answer of Q11 so it is effective
P=2.4
Qd=8000 and Qs=6400
Qd>Qs so there is a shortage in the market
Shortage =Qd-Qs=8000-6400
=1600 units

Option 3
$2.8, 1600 shortage.