The table shows market data for plastic bag usage. Suppose in a "green" initiative, the government institutes a price floor such that anybody who wishes to buy a plastic bag for their groceries must pay a minimum of 70 cents per bag.
$$\begin{array} { | c | c | c | }
\hline \begin{array} { c }
\text { Price } \
\text { (cents) }
\end{array} & \begin{array} { c }
\text { Quantity } \
\text { Demanded (millions) }
\end{array} & \begin{array} { c }
\text { Quantity } \
\text { Supplied (millions) }
\end{array} \
\hline 80 & 20 & 80 \
\hline 70 & 30 & 70 \
\hline 50 & 50 & 50 \
\hline 30 & 70 & 30 \
\hline 20 & 80 & 20 \
\hline 10 & 90 & 10 \
\hline
\end{array}$$ (a) What was the equilibrium price before the ceiling was implemented?
(b) Is the price floor of 70 cents per plastic bag binding?
(c) Does the price floor causes a surplus or a shortage? Of how much?

Question

The table shows market data for plastic bag usage. Suppose in a "green" initiative, the government institutes a price floor such that anybody who wishes to buy a plastic bag for their groceries must pay a minimum of 70 cents per bag.
 $$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Price } \
\text { (cents) }
\end{array} & \begin{array} { c } 
\text { Quantity } \
\text { Demanded (millions) }
\end{array} & \begin{array} { c } 
\text { Quantity } \
\text { Supplied (millions) }
\end{array} \
\hline 80 & 20 & 80 \
\hline 70 & 30 & 70 \
\hline 50 & 50 & 50 \
\hline 30 & 70 & 30 \
\hline 20 & 80 & 20 \
\hline 10 & 90 & 10 \
\hline
\end{array}$$ (a) What was the equilibrium price before the ceiling was implemented?
(b) Is the price floor of 70 cents per plastic bag binding?
(c) Does the price floor causes a surplus or a shortage? Of how much?

Quizplus · Accepted Answer

The Answer of The table shows market data for plastic bag usage. Suppose in a "green" initiative, the government institutes a price floor such that anybody who wishes to buy a plastic bag for their groceries must pay a minimum of 70 cents per bag.
 $$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Price } \
\text { (cents) }
\end{array} & \begin{array} { c } 
\text { Quantity } \
\text { Demanded (millions) }
\end{array} & \begin{array} { c } 
\text { Quantity } \
\text { Supplied (millions) }
\end{array} \
\hline 80 & 20 & 80 \
\hline 70 & 30 & 70 \
\hline 50 & 50 & 50 \
\hline 30 & 70 & 30 \
\hline 20 & 80 & 20 \
\hline 10 & 90 & 10 \
\hline
\end{array}$$ (a) What was the equilibrium price before the ceiling was implemented?
(b) Is the price floor of 70 cents per plastic bag binding?
(c) Does the price floor causes a surplus or a shortage? Of how much?

The Table Shows Market Data for Plastic Bag Usage (A) What Was the Equilibrium Price Before the Ceiling Was