Demand is given by qd=20-3p Supply is given by qs=2+3p
If the government imposes a $2.50 price ceiling on this market, what is the full economic price paid?

$3.5

Explanation:

The demand qd is given as 20-3p

The supply qs is given as 2 +3p

The government imposed a $2.50 price ceiling on the market

Therefore the full economic price that was paid can be calculated as follows

qd= qs

20-3p= 2+3p

20-2=3p+3p

18= 6p

p= 18/6

p= 3

Since the government increases the price by $2.50 then,

2 + 3(2.5)= 20-3p

2+ 7.5= 20-3p

9.5= 20-3p

9.5-20= -3p

-10.5= -3p

p = 10.5/3

p= 3.5

Hence the full economic price paid is $3.5

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explanation:

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