Problem
Given the following supply and demand equations
Qd = 100 - 5P
Qs = 10 + 5P
where Q and Qs represent the quantities demanded and supplied, respectively, and P is the price.
a. Determine the equilibrium price and quantity
b. If the government sets a minimum price of $10 per unit, how many units would be supplied and how many would be demanded? How could the government maintain this minimum price?
c. If the government sets a maximum price of $5 per unit, how many units would be supplied and how many would be demanded?
d. If demand increases to
Q'd = 200 - 5P
Determine the new equilibrium price and quantity.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.