A nation with a low income chooses to set a price ceiling on bread to guarantee that it is affordable for the poor. The table below shows the supply and demand parameters. Before the price ceiling, what were the equilibrium price and equilibrium quantity? If the price ceiling is set at $2.40, what would the excess demand or the shortage (quantity demanded minus quantity supplied) be? What about at $2.00? Or at $3.60? Draw graphs to present your solutions.
Table 2: Demand and supply for electric scooters
Price Qd Qs
$1.60 9,000 5,000
$2.00 8,500 5,500
$2.40 8,000 6,400
$2.80 7,500 7,500
$3.20 7,000 9,000
$3.60 6,500 11,000
$4.00 6,000 15,000