The table below shows the supply and demand for kilograms of maize per month in thousands. Use the information in the table to answer the questions that fol...
Question 1 Report
The table below shows the supply and demand for kilograms of maize per month in thousands. Use the information in the table to answer the questions that follow.
| Quantity supplied (000) | Price per thousand kilogram ($) | Quantity Demanded (000) |
| 16 | 3.00 | 3 |
| 13 | 2.50 | 5 |
| 9 | 2.00 | 9 |
| 6 | 1.50 | 14 |
| 3 | 1.00 | 19 |
| 1 | 0.50 | 26 |
(a) (i) If the government fixed the price of maize at $1.50 per thousand kilogram, what will be the excess demand for maize
(ii) If the government fails to enforce the fixed price, what will happen to the price of maize
(b) How can the government maintain a fixed price of $3.00 per thousand kilogram for maize?
(c) In relation to the equilibrium price, what will be the effects on the quantities demanded and supplied if the government enforced a fixed price of $1.00?
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