A recent study found that the demand and supply schedules for Frisbees are as follows:
|Price per Frisbee||Quantity Demanded||Quantity Supplied|
|$11||1 million Frisbees||15 million Frisbees|
a) What are the equilibrium price and quantity of Frisbees?
b) Frisbee manufacturers persuade the government that Frisbee production improves scientists understanding of aerodynamics and is thus important for national security. A concerned Congress votes to improve a price floor of $2 above the equilibrium price. What is the new market price? How many frisbees are sold?
c) Irate college students march on Washington and demand a reduction in the price of Frisbees. An even more concerned Congress votes to repeal the price floor and impose a price ceiling $1 below the former price floor. What is the new market price? How many Frisbees are sold?