Reference no: EM131038731

Given the schedules #1 and #2 shown below:

A. plot, draw, label supply and demand curves and estimate Pe and Qe.

B. if the government sets a price floor for this product at $8, what will the result be? Illustrate the price floor on your graph and describe the result as precisely as possible.

C. if the government reverses itself and places a price ceiling on this product at $4, show the price ceiling on your graph and precisely describe the result.

D. if Schedule #2 shifts to Schedule #3, what will the equilibrium values for Pe and Qe become? What could have caused such a shift?

Price	Quantity	Price	Quantity	Price	Quantity
$10.00	100	$10.00	0	$10.00	20
$8.00	80	$8.00	20	$8.00	40
$6.00	60	$6.00	40	$6.00	60
$4.00	40	$4.00	60	$4.00	80
$2.00	20	$2.00	80	$2.00	100