Please answer the questions in the picture attached below What is the difference between a price ceiling and a price floor? Compared to the competitive equilibrium price, where must price ceilings and price floors be set to havean impact on the market.2Refer to the figure below and answer the questions that follow:World marketU.S. marketSuurldSus0.400.300.300.20Dus.Dworld2481012Millions of apples per dayMillions of apples per daya.At the world price of 30 cents per apple the United States importsmillion apples per day.b.If a 10-cent-per-apple tax is levied on imported apples, the United States will importmillion apples per day.Assume that initially there is free trade. If the United States then imposes a 10-cent tax per apple what are the changes that happen in the market?c.3.Refer to the figure below and answer the questions that follow:0.55* 0.50A 0.450.40QNumber of pencilsAn example of an effective price ceiling would be government setting the price of pencils atdollars.b.An example of an effective price floor would be the government setting the price of pencils atdollars.List the most common nonprice rationing systems in the market.5.What are ration coupons and what is their purpose? Provide a historical or current example.

Answered: What is the difference between a price…

What is the difference between a price ceiling and a price floor? Compared to the competitive equilibrium price, where must price ceilings and price floors be set to have an impact on the market. 1.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter3: Demand And Supply

Section: Chapter Questions

Problem 53P: Table 3.8 shows information on the demand and supply for bicycles, where the quantities of bicycles...

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