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# Could

someone please work 2-5 and explain the answers to me. This is so confusing.

Use the graph below to answer questions I through 5 :
Price
Supply
\$ 4
ES
CS
Demand
50
60 65 70 80
Quantity
In the absence of any government restrictions , market forces will result in a price of
1 .
; at this price , the quantity exchanged is equal to
2 .
\$4; 50
b .
\$3: 50
\$3: 65
\$2 ; 80
`If there is a price floor of \$ 4 in this market , there will be :&quot; Thing.`
2 .
no effect on quantity because this is not a binding floor .&quot; &quot;| | |^ ^`^
d .
a decrease in demand and an increase in supply .
a market surplus of 20 .
a market shortage of 20 .
3 .
If there is a price floor of \$2 in this market , there will be :
no effect on quantity because this is not a binding floor .
d .
a decrease in demand and an increase in supply
C .
a market surplus of 20 .
d .
a market shortage of 20 .
4.
If there is a price ceiling of \$ 2 in this market , there will be :
no effect on quantity because this is not a binding ceiling .
an increase in demand and a decrease in supply .
a market surplus of 20 .
d.
a market shortage of 20
5 .
If the price ceiling of \$ 2 is removed , market forces will cause the price to :&quot;
a .
increase to \$3 , which will cause quantity demanded to rise and quantity supplied
to fall .
B.
increase to \$3 , which will cause quantity demanded to fall and quantity supplied
to rise .
stay at \$ 2 because sellers prefer to have a surplus .
C .
stay at \$2 because sellers prefer to have a shortage .

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