2.​At a price of $1000, Company BIG supplies and sells 1000 units. However, when the government imposes a price ceiling

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answerhappygod
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2.​At a price of $1000, Company BIG supplies and sells 1000 units. However, when the government imposes a price ceiling

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2.​At a price of $1000, Company BIG supplies and sells 1000 units. However, when the government imposes a price ceiling of $800, Company BIG supplies only 700 units but the quantity demanded increases to 1100 units. What is the price elasticity of supply and price elasticity of demand for Company Big products? How might Company Big distribute its 700 units? Is this an efficient way to allocate BIG products?
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