Suppose that the U.S. market for apples is characterized by the following supply and demand functions:
qs = 6ps,
qd = 100 - 10pd.
a. Solve for the equilibrium price and quantity.
b. Put the supply and demand equations in the price-inverse form. Re-solve the equi- librium price and quantity and verify that the values are the same as in part a.
c. Solve for the equilibrium values using Solver to maximize the difference between consumer and producer surplus.
d. Verify that the SP from the Solver sensitivity analysis is the same as the equilib- rium price found in part a.