Suppose demand and supply are given by qdnbsp 100 - p and

Question

Suppose demand and supply are given by Q_d = 100 - P and Q_s = 2P + 25.

1. What are the equilibrium quantity and price in this market?

2. Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus if a price floor of $ 40 is imposed in this market.

3. Determine the quantity demanded, the quantity supplied, and the magnitude of the shortage if a price ceiling of $ 15 is imposed in this market. Also, determine the full economic price paid by consumers.