Demand and Supply Schedules for Chocolate Bars
Price
($) | Quantity Demanded
(thousands per week) | Quantity Supplied
(thousands per week) |
| 2.00 | 1500 | 2100 |
| 1.80 | 1600 | 2050 |
| 1.60 | 1700 | 2000 |
| 1.40 | 1800 | 1950 |
| 1.20 | 1900 | 1900 |
| 1.00 | 2000 | 1850 |
| 0.80 | 2100 | 1800 |
| 0.60 | 2200 | 1750 |
| 0.40 | 2300 | 1700 |
TABLE 5-1
Refer to Table 5-1. Suppose that as a public-health measure the government wants to reduce the number of chocolate bars children consume. To achieve this outcome the government could implement which of the following policies?
◦ Impose a price floor of $1.80.
◦ Impose an equilibrium price of $1.20.
◦ Impose a price ceiling of $2.00.
◦ Impose a price ceiling of $1.80.
◦ Impose an equilibrium price of $1.80.
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