Answer:
$3.5
Explanation:
The demand qd is given as 20-3p
The supply qs is given as 2 +3p
The government imposed a $2.50 price ceiling on the market
Therefore the full economic price that was paid can be calculated as follows
qd= qs
20-3p= 2+3p
20-2=3p+3p
18= 6p
p= 18/6
p= 3
Since the government increases the price by $2.50 then,
2 + 3(2.5)= 20-3p
2+ 7.5= 20-3p
9.5= 20-3p
9.5-20= -3p
-10.5= -3p
p = 10.5/3
p= 3.5
Hence the full economic price paid is $3.5
