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19 Feb 2019
If the market price is kept below the equilibrium price by a regulation, what does the demand and supply model predict about the gap between quantity demanded and quantity supplied? If, in the real world, there is a gap between quantity demanded and quantity supplied, does it necessarily imply that a regulation is keeping the market price below the equilibrium price?
If the market price is kept below the equilibrium price by a regulation, what does the demand and supply model predict about the gap between quantity demanded and quantity supplied? If, in the real world, there is a gap between quantity demanded and quantity supplied, does it necessarily imply that a regulation is keeping the market price below the equilibrium price?
Nelly StrackeLv2
22 Feb 2019
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The demand and supply schedules for sunscreen at a small beach are shown below.
| Price(Dollars) | Quantity demanded of sunscreen bottles | Quantity supplied of sunscreen bottles |
| $35 | 1000 | 8500 |
| 30 | 2000 | 7000 |
| 25 | 3000 | 5500 |
| 20 | 4000 | 4000 |
| 15 | 5000 | 2500 |
| 10 | 6000 | 1000 |
a. If the price was $15 per bottle, the quantity demanded would be...... bottles, the quantity supplied would be .......bottles, and there would be ..........pressure on price. b. In the market for sunscreen, the equilibrium price is........ $ and the equilibrium quantity is........ bottles.
