Online Textbook-Chapter 2, Section E
To calculate the amount of shortage resulting from a price ceiling at $6, set the supply and demand curve both equal to $6. Demand: 6 = 15 – Q. Q = 9. Supply: 6 = 3 + Q. Q = 3. THE AMOUNT OF SHORTAGE IS 9 – 3 = 6 UNITS. To calculate the new equilibrium after imposing a $5 tax, set the new demand curve equal to the supply curve… ................
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