3/3/22, 3:04 PM Socrative

h Incorrect
Question:
Given market demand supply as follows
Qd = 400 - 2P
Qs = 20 + 3P
If government imposes price floor at 100.
Is this binding or non-binding price floor?
Find the Surplus or shortage (if any); and find the deadweight loss (if any).
Instruction:
- If the result is binding, shortage 30 units, DWL =200; then write binding; shortage; 30; 200
- If the result is binding, surplus 30 units, DWL =200; then write binding; surplus; 30; 200
- If the result is non-binding, no shortage, DWL =0; then write non-binding; no; 0; 0

Correct Answer:

binding; surplus; 120; 960

OK

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