1.Explain why many argue “market” prices will not necessary enable the economy to operate at its production frontier Draw the supply and demand curve based on the following demand and supply schedules. Show on the graph: market price and equilibrium price. Price Quantity Demanded Quantity Supplied $10 100 0 $12 80 20 $14 60 40 $16 40 60 $18 20 80 $20 0 100 Utilizing the supply and demand curve you have drawn above, show what market condition will prevail if the government sets the price of $18 in the market? What will happen to the market condition (at the government price of $18) if the income is reduced significantly..

1 .Explain why many argue “market” prices will not necessary enable the economy to operate at its production frontier Draw the supply and demand curve based on the following demand and supply...

1.Explain why many argue “market” prices will not necessary enable the economy to operate at its production frontier

Draw the supply and demand curve based on the following demand and supply schedules. Show on the graph: market price and equilibrium price.

Utilizing the supply and demand curve you have drawn above, show what market condition will prevail if the government sets the price of $18 in the market?

What will happen to the market condition (at the government price of $18) if the income is reduced significantly.

Jun 08, 2022