A recent study found that the demand and supply schedules for Frisbees are as follows:Price per FrisbeeQuantity DemandedQuantity Supplied$11 1 million Frisbees15 million Frisbees 10 212 9 4 9 8 6 6 7 8 3 610 1a. What are the equilibrium price and quantity of Frisbees?b. Frisbee manufacturers persuade the government that Frisbee production improves scientists' understanding of aerodynamics and thus is important for national security. A concerned Congress votes to impose a price floor $2 above the equilibrium price. What is the new market price? How many Frisbees are sold?c. Irate college students march on Washington and demand a reduction in the price of Frisbees. An even more concerned Congress votes to repeal the price floor and impose a price ceiling $1 below the former price floor. What is the new market price? How many Frisbees are sold?
A recent study found that the demand and supply schedules for Frisbees are as follows:
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
a. What are the equilibrium price and quantity of Frisbees?
b. Frisbee manufacturers persuade the government that Frisbee production improves scientists' understanding of aerodynamics and thus is important for national security. A concerned Congress votes to impose a price floor $2 above the equilibrium price. What is the new market price? How many Frisbees are sold?
c. Irate college students march on Washington and demand a reduction in the price of Frisbees. An even more concerned Congress votes to repeal the price floor and impose a price ceiling $1 below the former price floor. What is the new market price? How many Frisbees are sold?
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