Problems
10. Consider the market for some product X that is represented in the
following demand-and-supply diagram.For each of the legislated price controls listed in the next column,
determine the price and quantity exchanged after imposition of
the control, whether a shortage or surplus develops and, if so,
how much.
a. a price floor at $7 per unit
b. a price floor at $11 per unit
c. a price ceiling at $7 per unit
d. a price ceiling at $11 per unit
11. Consider the market for rental housing in Yourtown. The demand
and (short-run) supply schedules for rental housing are given in
the table.