Question

II. Suppose that you have just moved to the country of Northern Venice and that there is a supply and demand for the antibacterial gel market represented by the following equations: (20 points)
Qd = 902,000 - 85 P (Demand)
Qs = 74,000 + 53 P (Offer)

to. Calculate the equilibrium price and quantity (market equilibrium).

P * = ____________
Q * = ____________
b. Now assume that the government arbitrarily decides to set a minimum price of $ 4,000 bolívares del Norte. This situation would generate an imbalance called ________________________________.
The amount of this imbalance is ___________ antibacterial gel (numerical data).

Answer 1