Competitive equilibrium of market

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Reference no: EM139519

Q1. Assume Anna can either wash 12 cars or wax 4 cars every day also bob can either wash 6 cars or wax 3 cars every day
Illustrate what is the opportunity cost for doing each task for Anna also bob?

Q2. A student makes the following argument:

A price floor reduces the amount of a product that consumers buy because it keeps the price above the competitive equilibrium of market. Price ceiling on another hand increases the amount of a product that consumers buy because it keeps the price below the competitive market equilibrium. Do you agree with the student's reasoning? Use demand also supply graph to illustrate your answer

Reference no: EM139519

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