6. Suppose demand and supply a. What are the equilibrium quantity and price in this market? b. Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus if a price floor of $50 is imposed in this market. c. Determine the quantity demanded, the quantity supplied, and the magnitude of the shortage if a price ceiling of $32 is imposed in this market. Also, determine the full economic price paid by consumers.

4. U.S. agricultural farmers are excited since the government announced an increase in subsidies even though the substitutes for agricultural goods that are imported have increased in demand; therefore, please illustrate by constructing a supply and demand graph, the direction in which the curves will shift and state the new equilibrium price and quantity; for example, state whether price and quantity increased, decreased, or are indeterminate. Please explain your rationale based on the determinants of demand and supply.

Let the supply and demand for coffee be given by the following schedule. Price:             3,  4,  5,  6,  7,  8,  9,  10,  11 Quantity Supplied:          100,  200,  300,  400,  500,  600,  700,  800,  900 Quantity Demanded:        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. ) 1. What quantity of coffee is efficient? 2. What quantity will be traded with the price ceiling?  3. 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)?  4. What is the total cost of waiting in line?

Explain and illustrate the effects upon price and quantity for each of these five situations relating to the market for high-definition TVs. Draw a separate supply - demand graph for each situation. a. Interest rates on consumer loans increase b. The number of sellers and manufacturers decreases c. The government reduces income taxes upon consumers. d. The number of consumers increases. e. Production costs decrease.