Suppose the demand curve for almonds is given by P = 8 - 2Q, and the supply curve of almonds is given by P = 2 + Q, where P is the price of almonds (dollars per pound) and Q is the quantity of almonds (thousands of pounds). a. Calculate the equilibrium price and quantity of almonds. b. Suppose the government imposes a price ceiling of $3 per pound on almonds. Will this price ceiling be effective? If so, explain whether the price ceiling will create an excess demand or excess supply of almonds and calculate the size of the excess demand/supply. If not, explain why not.

Suppose the demand curve for almonds is given by P = 8 - 2Q, and the supply curve of almonds is given by P = 2 + Q, where P is the price of almonds (dollars per pound) and Q is the quantity of almonds (thousands of pounds). a. Calculate the equilibrium price and quantity of almonds. b. Suppose the government imposes a price ceiling of $3 per pound on almonds. Will this price ceiling be effective? If so, explain whether the price ceiling will create an excess demand or excess supply of almonds and calculate the size of the excess demand/supply. If not, explain why not.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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