Question

Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus if a price floor of $46 is imposed in this market. Quantity demanded...

Answer 1

To determine the quantity demanded, quantity supplied, and surplus at a price floor of $46, compare the demand and supply curves. Subtract the quantity demanded from the quantity supplied to calculate the surplus.

Step-by-step explanation:

In this market, a price floor of $46 is imposed. To determine the quantity demanded and supplied at this price, we need to compare the demand and supply curves. If we look at the demand curve, we can find the quantity demanded at a price of $46. Similarly, the quantity supplied can be found by looking at the supply curve. The surplus can be calculated by subtracting the quantity demanded from the quantity supplied at a price floor of $46.