Twenty-two-year-old chad has just graduated from college. he wants to buy a new car to celebrate. he expects to be able to make payments through his new job. his parents tell him that they will him out, if he has difficulty making payments down the road, so he buys the car. shortly thereafter, he loses his job, and can’t make the car payment. he tells the dealer that his parents have agreed to cover for him, but they have had unexpected home repair expenses, and it would be a hardship for them to cover for chad. which of the following is true? a. the dealer cannot legally require the parents to make the payment. b. the dealer can legally require the parents to make the payment. c. only chad can legally require his parents to make the payment. d. none of the above.

10. problems and applications q10 a market is described by the following supply-and-demand curves: qsqs = = 2p2p qdqd = = 300â’p300â’p the equilibrium price is $ and the equilibrium quantity is . suppose the government imposes a price ceiling of $90. this price ceiling is , and the market price will be $ . the quantity supplied will be , and the quantity demanded will be . therefore, a price ceiling of $90 will result in . suppose the government imposes a price floor of $90. this price floor is , and the market price will be $ . the quantity supplied will be and the quantity demanded will be . therefore, a price floor of $90 will result in . instead of a price control, the government levies a tax on producers of $30. as a result, the new supply curve is: qsqs = = 2(pâ’30)2pâ’30 with this tax, the market price will be $ , the quantity supplied will be , and the quantity demanded will be . the passage of such tax will result in .