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Scenario 6-2
Suppose demand for a product is given by the equation
QD = 120 - 4P
and supply for the product is given by the equation
QS = 4P
-Refer to Scenario 6-2. Suppose the government sets a price floor at $13 for this product. Is this price floor binding, and what will be the size of the shortage/surplus in this market?
Profitability
The degree to which a business or activity yields profit or financial gain.
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