Given the schedules #1 and #2 shown below: plot, draw, label supply and demand curves and estimate Pe and Qe.

Given the schedules #1 and #2 shown below:

A. plot, draw, label supply and demand curves and estimate Pe and Qe.

B. if the government sets a price floor for this product at $8, what will the result be? Illustrate the price floor on your graph and describe the result as precisely as possible.

C. if the government reverses itself and places a price ceiling on this product at $4, show the price ceiling on your graph and precisely describe the result.

D. if Schedule #2 shifts to Schedule #3, what will the equilibrium values for Pe and Qe become? What could have caused such a shift?

a)12108Price 6420 0 20 40 60 80 100 120 Quantity Pe and Qe are $5 and 50 units respectivelyb)At the floor price, quantity demand will be 20 while supply will by 80. The price floor will…

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