5. Suppose the market shown below. a. Suppose now that the government decides to introduce a price FLOOR above the equilibrium price. How would that affect the market? Draw the change on the graph below. b. What is the new quantity demanded (label it Qd)? What is the new quantity supplied (label it Qs)? What is the new quantity exchanged? What is the new price at which the good is exchanged? c. Indicated whether the market is in equilibrium, or whether there is a surplus or shortage.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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5 a,b,c
5. Suppose the market shown below.
a. Suppose now that the government decides to introduce a price FLOOR above
the equilibrium price. How would that affect the market? Draw the change on
the graph below.
b. What is the new quantity demanded (label it Qd)? What is the new quantity
supplied (label it Qs)? What is the new quantity exchanged? What is the new
price at which the good is exchanged?
c. Indicated whether the market is in equilibrium, or whether there is a surplus or
shortage.
MacBook Pro
Search or tyne LURI
Transcribed Image Text:5. Suppose the market shown below. a. Suppose now that the government decides to introduce a price FLOOR above the equilibrium price. How would that affect the market? Draw the change on the graph below. b. What is the new quantity demanded (label it Qd)? What is the new quantity supplied (label it Qs)? What is the new quantity exchanged? What is the new price at which the good is exchanged? c. Indicated whether the market is in equilibrium, or whether there is a surplus or shortage. MacBook Pro Search or tyne LURI
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