Q Applications of Supply and Demand Problem Set 1. The graph below shows the supply and demand curves for burritos. Suppose that the government imposes a Price Ceiling equal to $5. Will this result in a binding or non-binding price ceiling? Use the following information to answer questions 2 through 5: The graph below shows the supply and demand curves for soda. 2. First consider a situation without any government interventions and no price controls. In that case, what is the equilibrium quantity? What is the equilibrium price? 3. Now suppose that the government imposes a Price Floor equal to $8. As a result of this new policy, what is the quantity demanded? What is the new quantity supplied? 4. As a result of this Price Floor, is there shortage or surplus, or is the price control non-binding? 5. What is the amount of the shortage or surplus? Use the following information to answer questions 6 through 23: Use the graph below to answer the following questions. 6. What is the size of consumer surplus when there is no government price control? What is the size of producer surplus when there is no government price control? 7. What is the size of deadweight loss when there is no government price control? 8. What is the size of consumer surplus when a price ceiling of $5 is imposed? What is the size of producer surplus when a price ceiling of $5 is imposed? 9. What is the size of deadweight loss from a price ceiling of $5? 10. What is the difference between total surplus before and after price control is imposed? How does this number compare to the deadweight loss? 11. Will a binding price ceiling always cause a shortage? If a shortage always exist why would the government enact a price ceiling?