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 |
| 10 | 2 | 12 |
| 9 | 4 | 9 |
| 8 | 6 | 6 |
| 7 | 8 | 3 |
| 6 | 10 | 1 |
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?