price quantity demanded quantity supplied 300 60 30 400 55 40 500 50 50 600 45 60 700 40 70 800 35 80 a) Explain what would happen on the market if the government places a price ceiling at $700. b) what will be the result of a price ceiling of $400.

price quantity demanded quantity supplied 300 60 30 400 55 40 500 50 50 600 45 60 700 40 70 800 35 80 a) Explain what would happen on the market if the government places a price ceiling at $700. b) what will be the result of a price ceiling of $400.

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter7: Demand And Supply

Section7.4: Putting Supply And Demand Together

Problem 5R

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Question

price	quantity demanded	quantity supplied
300	60	30
400	55	40
500	50	50
600	45	60
700	40	70
800	35	80

a) Explain what would happen on the market if the government places a price ceiling at $700.

b) what will be the result of a price ceiling of $400.

Video Definition Video Definition Government regulation setting a maximum price a business may charge for a given good or service. A price ceiling itself does not cause demand or supply to change. It is simply a mechanism used to set a price that can be legally charged in the market. Price ceilings are often implemented during times of crisis to avoid price gouging.

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