Consider a competitive market for corn for which the quantities demanded and supplied (per year) at various prices are given as follows: Price (RM) Demand (millions) Supply (millions) 60 22 14 80 20...

Consider a competitive market for corn for which the quantities demanded and supplied (per year) at various prices are given as follows:

1. What are the equilibrium price and quantity of corn?

2. Suppose the government sets a price ceiling of RM80, will there be a shortage or surplus and how much? Explain why the market is in disequilibrium.

 3.
What are the impacts from the regulated price by government?