The supply and demand curves for a product are as follows. What is quantity supplied if a price ceiling of $4 is set? Q D = 600 - 100P Q S = -150 + 150P

Alright. Let's try this one. The supply and demand curves for a product are as follows. What is quantity supplied if a price ceiling of $4 is set? Alright. So we've been given these equations. The first step is to find our equilibrium, right? They've told us let's go ahead and mark this. They've told us we've got a price ceiling of $4, right, and we're looking for quantity supplied. So in the end, we're not gonna have to figure out what quantity demanded is, just quantity supplied. So let's go ahead and look for equilibrium, right? We've got quantity demanded and quantity supplied. They're both isolated on the equation and we wanna know that at equilibrium, quantity demanded equals quantity supplied so we can set these equal to each other. Right? So at equilibrium, 600 minuteus 100p equals negative 150+ 150p Right? So let's solve for our equilibrium price. We're gonna add let's get all our p's on one side. I'm gonna add a 100p to both sides, and let's get all of our number on the other side. So this cancels here. This cancels here. What's left? We've got 600 plus 150 is 750 equals 150p+100p is 250p, right? So last thing is to divide oops. Divide by 250 to get the p by itself, and what is gonna be our price in this case? 7.50 divided by 2.50. This is gonna be 3, right? So our equilibrium price p star is equal to 3. All right, so now that we know our equilibrium price, let's go ahead and find our equilibrium quantity. So equilibrium quantity is going to be when we just plug in this price into either equation because they're both going to be the same at equilibrium. Now I think that the quantity demanded looks easier so I'm going to use that one. The quantity demanded which is q star right? I'm going to put q star here because at this price of $3 we are going to be at equilibrium quantity. 600 minuteus a 100 and I'm going to put in our price of 3 here at equilibrium. Right. So let's go ahead and solve this. Q star equals 600 minuteus 3 times a 100 is 300. Q star is gonna equal 300, right? That is our answer. So let's go ahead and look at this on a graph. Easier to visualize it and then let's decide whether we have an effective or ineffective price floor or price ceiling in this case. Let me draw that better. Alright. So here we go. We figured out this point is going to be a price of 3 and a quantity of 300. Right? Supply, demand, quantity axis over there. So now let's decide whether we have an effective or ineffective price ceiling. Alright. So our price ceiling of $4 So when is a price ceiling effective? Well, we draw our house and our house right here under equilibrium is gonna show us that an effective price ceiling, that ceiling right there when I extend it, is below the equilibrium, right? That price is below equilibrium. So effective price ceilings are below equilibrium. What do we have here? A price ceiling of $4 that's above equilibrium, right? So that's an ineffective price ceiling. It's gonna have no effect on the market and it means we are going to trade quantity supplied and quantity demanded are gonna be at equilibrium. The price ceiling has no effect, right? So our answer here is our equilibrium quantity of 300 and that's it, we're done. The answer is C. That's gonna be the quantity supplied and it's as well the quantity demanded, right? So the trick there was to find out that the price ceiling was ineffective, but to know that we needed to know what the equilibrium price was. Alright? So let's go ahead and move on.

The supply and demand curves for a product are as follows. What i...

0. Basic Principles of Economics1h 5m

1. Reading and Understanding Graphs59m

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3. The Market Forces of Supply and Demand2h 26m

4. Elasticity2h 16m

5. Consumer and Producer Surplus; Price Ceilings and Floors3h 45m

6. Introduction to Taxes and Subsidies1h 46m

7. Externalities1h 12m

8. The Types of Goods1h 13m

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The supply and demand curves for a product are as follows. What is quantity supplied if a price ceiling of $4 is set?
Q_D = 600 - 100P
Q_S = -150 + 150P

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The supply and demand curves for a product are as follows. What is quantity supplied if a price ceiling of $4 is set? QD = 600 - 100PQS = -150 + 150P

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The supply and demand curves for a product are as follows. What is quantity supplied if a price ceiling of $4 is set?
Q_D = 600 - 100P
Q_S = -150 + 150P