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