A Question per day - Day 9



1. Firms in a perfectly competitive market are facing the following demand and supply curves.

(Demand) P = 1000 - 2Qd
(Supply) P = 200 + 3Qs

How would consumers and producers be affected by a $500 price ceiling?
(note that part of your answer must address how surplus has changed here, as well as any potential direct or indirect effects)