Q. The below information about the market for chocolate bars are revealed by market research:
Demand schedule, qd = 1600 - 300p
Supply schedule, qs = 1400 + 700p
where q is quantity demanded / supplied and p is price.
(a) Compute the equilibrium quantity and price in market for chocolate bars.
(b) Support your answer amid an illustration which shown market equilibrium for chocolate bars which comprise x and y interrupts of the curves and label them accordingly.
(c) Show and label the ‘shortage' and ‘surpluses in your graph.