3. The demand for a product is given by the equation Qd = 500 - 2P, and the supply is given by Q = 100+ 3P. (a) Determine the equilibrium price and quantity. (b) The government imposes a price ceiling of $50. What will be the quantity demanded and quantity supplied at this price? (c) Calculate the shortage or surplus resulting from the price ceiling. (d) Discuss the potential consequences of the price ceiling on the market.

02. What would be the impact of a price ceiling of $ 9     (a) a shortage of 12 units.     (b) a shortage of 9 units.     (c) a new equilibrium quantity would be established.     (d) a surplus of 20 units.     (e) a surplus of 12 units.

3. To summary the market survey for local trip tour during school vacation, the right-hand table is shown. Quantity Quantity Demanded Supplied Price ($) Base on this table: 20 500 50 420 a) Define the equations of demand and supply for local trip tour. (20 marks) b) Find the equilibrium-price and equilibrium-quantity for local trip tour and draw a graph to show this market equilibrium. (15 marks) 40 150 60 340 250 80 260 350 100 180 450

The market supply and demand for a product are shown in the diagram below. PRICE $6 Supply Demand 80 200 QUANTITY (a) Is the price elasticity of supply less than one, equal to one, or greater than one? Explain. (b) Calculate consumer surplus at the equilibrium price. Show your work. (C) Now suppose the government imposes a per-unit tax of $1 on producers. (i) What happens to total revenue received by producers after they pay the tax to the government? Explain. (ii) Will producer surplus increase, decrease, or stay the same? (iii) Will total surplus increase, decrease, or stay the same? Explain.

(3) A recent study found that the demand-and-supply schedules for Frisbees are as follows: a. What are the equilibrium price and quantity of Frisbees? (2)b. Frisbee manufacturers persuade the government that Frisbee production improvesscientists’ understanding of aerodynamics and thus is important for nationalsecurity. A concerned Diet members votes to impose a price floor $2 above theequilibrium price. What is the new market price? How many Frisbees are sold? (4)c. University students march on Tokyo and demand a reduction in the price ofFrisbees. An even more concerned Diet members votes to repeal the price floorand impose a price ceiling $1 below the former price floor. What is the newmarket price? How many Frisbees are sold? Price per Frisbee Quantity Demanded Quantity Supplied  $11 1 million Frisbees 15 million Frisbees  10 2 12 9 4 9 8 6 6 7 8 3 6 10 1

. Which statement best explains how a price ceiling affects the market for gasoline? It can cause more gasoline producers to enter the market. It can lead to producers increasing their production costs for gasoline. It can cause shortages in the supply of gasoline. It can lead to a decrease in the demand from consumers for gasoline.

4. The market for plastic has been estimated to have these supply and demand relationships: Supply Q = 100P - 1000 Demand Q = 10000 - 100P where P represents price per unit in dollars, and Q represents sales per week in tons. a. Determine the equilibrium price and quantities. b. Determine the amount of shortage or surplus that would develop at P=$40.

Assume gadgets are sold in a competitive market, the equilibrium price is $6, and the equilibrium quantity is 500 units.(a) Using the numerical values above, draw a correctly labeled graph of the market for gadgets and show each of the following.(i) The equilibrium price(ii) The equilibrium quantity(b) At a price of $8 per unit, will there be a surplus or a shortage in the market? Explain.(c) Assume gadgets now become more popular. On your graph in part (a), show the effect of the increase in gadgets' popularity on the equilibrium price and quantity of gadgets.(d) Assume instead there is an increase in the price of tin, a major input in producing gadgets. What will be the effect of an increase in the price of tin on the market for gadgets?(e) If both changes in part (c) and part (d) occurred simultaneously, will the equilibrium quantity of gadgets increase, decrease, remain unchanged, or be indeterminate? Explain.

The Unique Gifts catalog lists a "super loud and vibrating alarm clock." Their records indicate the following information on the relation of monthly supply and demand quantities to the price of the clock. Demand     Supply     Price 167     132     $32 137     172     $56 Use this information to find the following. (b) the demand equation p     (c) the supply equation p     (d) the equilibrium quantity and price

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