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3. Consider a competitive market with the following demand and supply curves: ?? = 600−100?, ??...

3. Consider a competitive market with the following demand and supply curves: ?? = 600−100?, ?? = −150+150?



b. If government imposes a price of P5.00, is this a price ceiling or price floor? Will there be a shortage or surplus? If so, by how much will the shortage or surplus be?

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