f.4 econ price floor

2011-04-02 9:25 pm

The following is the demand and supply schedules if Good X.
Price 　　　　　　 10 12 　14 　16 18
Quantity demanded 300 250 200 150 100
Quantity Supplied 100 150　 200 250 300

If good x is traded in a free market,P= 14,Qt=200
Total Market value is 2800. The market is at equilibrium.

If now the government sets a price floor at$ 16,Qt=150
Total market value = 2400
The problem of excess supply would arise.

If now the government sets a price floor at $12 ,Qt=_____
Total market value is______.

個Qt係咪200??total value 係咪2800??如果係.點解?

回答 (1)

Acct

2011-04-03 4:37 pm

✔ 最佳答案

If now the government sets a price floor at $12 ,Qt=150
Total market value is 1800.

As at price $12, only supply of 150 is available in the market.

Although the demand is 200, only quantity of 150 can be brought by people.

hence total market value = 12 x 150.

The problem of excess demand would arise. Some people cannot buy the goods.

👍 0 👎 0