A market is described by these equations: Demand: Q = 1300 - 4P Supply: P = 100 +.5Q Calculate equilibrium values for these: a) Equilibrium Price b) Equilibrium Quantity c) Size of the surplus (quantity) created by a price floor of $300 d) Total government revenue required if government buys the surplus at the floor price of $300 %3D
A market is described by these equations: Demand: Q = 1300 - 4P Supply: P = 100 +.5Q Calculate equilibrium values for these: a) Equilibrium Price b) Equilibrium Quantity c) Size of the surplus (quantity) created by a price floor of $300 d) Total government revenue required if government buys the surplus at the floor price of $300 %3D
Chapter4: Markets In Action
Section: Chapter Questions
Problem 15SQ
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