Consider a market characterized by the following inverse demand and supply functions: PX = 10 – 2QX and PX = 2 + 2QX. Compute the number of units and the price at which those units will be exchanged when there is an $8 per unit price floor.
Note
Consider a market characterized by the following inverse demand and supply functions: PX = 10 - 2QX and PX = 2 + 2QX. Compute the number of units and the price at which those units will be exchanged when there is an $8 per unit price floor 1 unit and $6 per unit.