Economics_Exercise_3_4_5

  3. Using   the following schedule, define the equilibrium price and quantity.         Describe the situation at a price of   $10. What will occur? Describe the situation at a price of   $2. What will occur?                 Price Quantity Demanded Quantity Supplied        $1   500  100         $2   400  120         $3   350  150         $4   320  200         $5   300  300         $6   275  410         $7   260  500         $8   230  650         $9   200  800         $10   150  975                      Describe the situation at a price of   $10. What will occur?      

Describe the situation at a price of$2 . What will occur?

            4. Suppose the government imposed a minimum price   of $7 in the schedule 3 What would occur ?     

           5.In exercise 3 , indicate what the price would have to be   represent an effective price ceiling . Point out the surplus or shortage that   results. Illustrate a price floor and provide an example of a price floor