Assume that the market demand for barley is QD = 4400 – 480 P and the supply of barley is QS = - 200 + 360 P. A. What is the equilibrium price and quantity in the barley market? B. Calculate the consumer surplus and producer surplus in this market. C. If the government imposes a price floor of $ 7 in this market, will there be a surplus or shortage, and how large will it be?

Assume that the market demand for barley is QD = 4400 – 480 P and the supply of barley is QS = - 200 + 360 P. A. What is the equilibrium price and quantity in the barley market? B. Calculate the consumer surplus and producer surplus in this market. C. If the government imposes a price floor of $ 7 in this market, will there be a surplus or shortage, and how large will it be?

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 15PAE

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