What will be the price and quantity sold with price floor

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Reference no: EM131917556

Problem

The Organization for the Promotion of Brussels Sprouts has convinced the government of Ironia to institute a price floor on the sale of brussels sprouts, at $8 per bushel. Demand is given by P 5 9 2 Q and supply by P 5 2Q, where Q is measured in thousands of bushels.

a. What will be the price and quantity of brussels sprouts sold at market equilibrium?

b. What will be the price and quantity sold with the price floor?

c. How big will be the excess supply of brussels sprouts produced with the price floor?

Reference no: EM131917556

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