Analyze impact of floor on price-quantity demand, Microeconomics

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Analyze impact of floor on price-quantity demand

Suppose that we have the following demand and supply functions.

QX = 100 - 0.4PX

QX = 40 + 0.2PX

a. What is the equilibrium market price for product X

b. What is the equilibrium quantity demanded and supplied

c. Government imposes a price floor of $120. Analyze the impact of this floor on price, quantity demand and supplied. Would this price floor create a surplus or scarcity of this product in the market?

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Microeconomics: Analyze impact of floor on price-quantity demand

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Microeconomics: Analyze impact of floor on price-quantity demand

Reference No:- TGS049641

Have a Question? (oR Write a Review)

Recent Questions Asked Microeconomics

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Request for Solution File

Ask an Expert for Answer!!

Microeconomics: Analyze impact of floor on price-quantity demand

Reference No:- TGS049641

Recent Questions Asked Microeconomics

Q : Amount of annual contributions

Q : What is the equivalent units of production

Q : How trade flows reflect theory of comparative advantage

Q : What should any additional tax and non-tax issues be

Q : Analyze impact of floor on price-quantity demand

Q : Problem based on quarterly production budget

Q : Investment banker of grumpy gargamel company

Q : Discrete presentation differ from the blending

Q : Factory overhead based on direct labor costs

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