erican.edu en Facebook how much tax re On Thi... able 6-3 The following table co

Question

erican.edu en Facebook how much tax re On Thi... able 6-3 The following table contains the demand schedule and supply schedule for a market for a particular good. Suppose sel of the good successfully lobby Congress to impose a price floor $2 above the equilibrium price in this market. Quantity Supplied Price Quantity Demanded 15 13 $0 12 15 18 efer to Table 6-3. Following the imposition of a price floor $2 above the equilibrium price, irate buyers convince Congress to repeal the price foor and to impose a price celing $1 below the former price fioor. The resulting market price a. $2. b.$3. c.$5 Od.$4. QUESTION 5 Click Save and Submit to

Explanation / Answer

Equilibrium price is $ 3 because quantity demanded = quantity supplied at this price.

Price after price floor = 3 + 2 = $ 5

Price after decrease in price = $ 5 - $ 1 = $ 4

So, market price will be $ 4.

Answer is d) $ 4

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