Question

2.1 What are the equilibrium price and quantity of Frisbees? quantity suppled quantity demanded. Equilibrium Price:dollars Equ ilibrium Quantity:million 2.2 Frisbee manufactures persuade the government that Frisbe production amproves scientists understanding of aerodynamics and thus is important for national security. A concerned Congress votes to impose a price floor at S10. S10 S9 S8 S7 56 10 2.2.1 What is the new market price? 2.2.2 How many Frisbees are able to be exchanged in the market? 2.2.3 What force does exist under the stated price floor, sbortage or surplus? dollars Note that with price floor $10, price can not go below Sto at any instance Note: Goods can not be excljanged more than either the quantity supplied or the quantity million 2.3 Irate college students match on Washington and demand a reduction in the price of Frisbees. An even more concerned Congress votes to repeal the price floor and instead impose a price ceiling at $ 2.3.1 What is the new market price? dollars Note that with price deiling 59,priee can thot go ab And dunk anodhor thing to the prio eling boand a this tme Ifnot thon market prive equlibriom pce above S9 at any instance 2.3.2 How many Frisbees are exchanged

Answer 1

Answer 2.1 Equilibrium price = $8

Equilibrium quantity = 6 million

Answer 2.2.1 New market price $10

At $10:prices the frisbee that can be exchanged is equal to 2 million.

2.2.2 At this present instance there is a surplus as Quantity supplied is more than Quantity demanded.

2.2.3 If there is price ceiling of $9 and it's bound than there is Quantity of frisbee exchanged is 4 million.

If price ceiling is not bound to $9 than there is Equilibrium price applicable and there is no surplus and Quantity of frisbee exchanged is 6 million.