Scenario 6-1
Suppose That Demand in the Market for Good $$Q ^ { D } = 30 - P$$

question 241

Essay

Scenario 6-1
Suppose that demand in the market for good X is given by the equation
$$Q ^ { D } = 30 - P$$ and that supply in the market for good X is given by the equation
$$Q ^ { S } = 2 P$$
-Refer to Scenario 6-1. If the government set a price floor at $13, would there be a shortage or surplus, and how large would be the shortage/surplus?

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Definitions:

Clayton Act

A United States antitrust law, enacted in 1914, designed to prevent anticompetitive practices and monopolies, enhancing the Sherman Antitrust Act.

Exclusive Dealer

An exclusive dealer is a distributor or seller who has been granted the sole rights to sell a manufacturer's products in a specific geographic area or market.

Price Discrimination

A pricing strategy where identical or substantially similar goods or services are sold at different prices by the same provider in different markets or to different segments of consumers.

Tying Agreements

Contracts where a seller requires a buyer to purchase a secondary product as a condition of buying a desired primary product.