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A recent study found that the demand and supply schedules
Chapter , Problem 3(choose chapter or problem)
A recent study found that the demand and supply schedules for Frisbees are as follows: Price per FrisbeeQuantity DemandedQuantity Supplied$11 1 million Frisbees 15 million Frisbees10 2129 498 667 836 101a.What are the equilibrium price and quantity of Frisbees?b.Frisbee manufacturers persuade the government that Frisbee production improves scientists under-standing of aerodynamics and thus is important for national security. A concerned Congress votes to mpose a price floor $2 above the equilibrium price. What is the new market price? How many Frisbees are sold?c.Irate college students march on Washington and demand a reduction in the price of Frisbees. An even more concerned Congress votes to repeal the price floor and impose a price ceiling $1 below the former price floor. What is the new market price? How many Frisbees are sold?
Questions & Answers
QUESTION:
A recent study found that the demand and supply schedules for Frisbees are as follows: Price per FrisbeeQuantity DemandedQuantity Supplied$11 1 million Frisbees 15 million Frisbees10 2129 498 667 836 101a.What are the equilibrium price and quantity of Frisbees?b.Frisbee manufacturers persuade the government that Frisbee production improves scientists under-standing of aerodynamics and thus is important for national security. A concerned Congress votes to mpose a price floor $2 above the equilibrium price. What is the new market price? How many Frisbees are sold?c.Irate college students march on Washington and demand a reduction in the price of Frisbees. An even more concerned Congress votes to repeal the price floor and impose a price ceiling $1 below the former price floor. What is the new market price? How many Frisbees are sold?
ANSWER:Step 1 of 4
Equilibrium refers to a situation when the quantity demanded by the customers tends to become exactly equal to the quantity supplied by the producer or the sellers present in the market. Price floor basically refers to a particular price that the government fixes to ensure that the price of that specific product does not exceed that particular price.