Question: Suppose demand and supply are given by Q d = 50 – P and Q s = 1/2 P – 10

a) What are the equilibrium quantity and price in this market?

b) Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus if a price floor of $42 is imposed in this market.

c) Determine the quantity demanded, the quantity supplied, and the magnitude of the shortage if a price ceiling of $30 is imposed in this market.