Quantity DemandedPriceQuantity SuppliedSurplus / Shortage85$3.4065 80 3.7070 75 4.0075 70 4.3080 65 4.6085 60 4.9090 The above table represents the market for pineapples.Fill in the numerical values in the Surplus / Shortage column. What is the equilibrium price? What is the equilibrium quantity? Explain your answers using the Surplus/Shortage column. Draw a graph using the data in the table. Suppose the government places a price floor of $4.60 in this market for pineapples. Show this price floor on your graph and explain the effect it will have on the market. Suppose the government places a price ceiling of $3.70 in this market for pineapples. Show this price ceiling on your graph and explain the effect it will have on the market.

Quantity Demanded Price Quantity Supplied 85 $3.40 65 80 3.70 70 75 4.00 75 70 4.30 80…

Answered: Quantity Demanded Price Quantity…

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter4: Supply And Demand: An Initial Look

Section: Chapter Questions

Problem 4TY: The following table summarizes information about the market for principles of economics textbooks:...

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Quantity Demanded	Price	Quantity Supplied	Surplus / Shortage
85	$3.40	65
80	3.70	70
75	4.00	75
70	4.30	80
65	4.60	85
60	4.90	90

The above table represents the market for pineapples.

Fill in the numerical values in the Surplus / Shortage column.

What is the equilibrium price? What is the equilibrium quantity? Explain your answers using the Surplus/Shortage column.

Draw a graph using the data in the table.

Suppose the government places a price floor of $4.60 in this market for pineapples. Show this price floor on your graph and explain the effect it will have on the market.

Suppose the government places a price ceiling of $3.70 in this market for pineapples. Show this price ceiling on your graph and explain the effect it will have on the market.

Expert Solution

Step 1

Quantity Demanded	Price	Quantity Supplied
85	$3.40	65
80	3.70	70
75	4.00	75
70	4.30	80
65	4.60	85
60	4.90	90

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