coreklarity

Demand Elasticity ($E_d$): Unitary (1.0)

Exact $E_d$:

Supply Elasticity ($E_s$): Unitary (1.0)

Exact $E_s$:

Minimum Price ($P_{min}$): $50 (At Equilibrium)

Min Price ($):

Market Surplus 0 units Qs - Qd

Quantity Demanded 50 units At Pmin

Quantity Supplied 50 units At Pmin

Quantity Demanded (Qd) Qd = 50 - 1.0 × (50 - 50) = 50

Quantity Supplied (Qs) Qs = 50 + 1.0 × (50 - 50) = 50

Surplus = Qs - Qd 50 - 50 = 0 units

Minimum Price (Price Floor) & Market Surplus