Will there be a surplus or shortage of bicycles? If so how big a surplus or shortage?

Suppose that the number of bicycles demanded and supplied in the United States at various prices are Show more Suppose that the number of bicycles demanded and supplied in the United States at various prices are as follows: Price of a bicycle (dollars) Quantity demanded/Year (millions of bicycle) Quantity Supplied/Year (millions of bicycle) 60 22 14 80 20 16 100 18 18 120 16 20 1a) Draw the appropriate demand and supply curve given the above numbers. 2a) Based on the data presented here what is the equilibrium price of a bicycle in the United States? 3a) If the price is $80 will there be an excess demand? An excess supply? 4a) If the price is $120 will there be an excess demand? An excess supply? 5a) The government imposes an excise tax of $40 on each bicycle. Then it decides to set a price ceiling of $100 on the price of a bicycle. Will there be a surplus or shortage of bicycles? If so how big a surplus or shortage? Show less

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