A low-income country decides to set a price ceiling on bread…
A low-income country decides to set a price ceiling on bread so they can make sure that bread is affordable to the poor. The conditions of demand and supply are given in the table below. Price Quantity Demanded Quantity Supplied $1.60 9,000 5,000 $2.00 8,500 5,500 $2.40 8,000 6,400 $2.80 7,500 7,500 $3.20 7,000 9,000 $3.60 6,500 11,000 $4.00 6,000 15,000 Before the price ceiling, the equilibrium price is and the equilibrium quantity is . With a price ceiling of $2.40, the excess demand is loaves of bread. With a price ceiling of $2.00, the excess demand is loaves of bread. With a price ceiling of $3.20, the excess demand is loaves of bread.