Price Supply k Demand Quantity Reference: Ref 4(5)-5 Figure: Price Control (Figure: Price Control) Use Figure: Price Control. One effective price ceiling would be the price indicated at point between points and there would be a equal to the difference O A) b; surplus; fand e B) b; shortage; fand e C) d: shortage: iand h

macro question 2

Label axis and curves. Determine if the situation is a Demand or a Supply and specify which non-price determinants is involved. Illustrate on the graphs: o the new curve, the surplus OR shortage created the new Price at the new E 4. Answer the following scenarios for each of the next Non-Price questions 1 b) The minimum wage in Canada increased to 20$/h. Market of cheap noodles X

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.