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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
$10.00
100
0
20
$8.00
80
40
$6.00
60
$4.00
$2.00
Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 ..
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