A market is described by the following supply and demand curves:

QS 5 2P QD 5 300 2 P.

a. Solve for the equilibrium price and quantity.

b. If the government imposes a price ceiling of $90, does a shortage or surplus (or neither) develop?

What are the price, quantity supplied, quantity demanded, and size of the shortage or surplus?

c. If the government imposes a price floor of $90, does a shortage or surplus (or neither) develop?

What are the price, quantity supplied, quantity demanded, and size of the shortage or surplus?

d. Instead of a price control, the government levies a

$30 tax on producers. As a result, the new supply curve is:

QS 5 2(P 2 30).

Does a shortage or surplus (or neither) develop?

What are the price, quantity supplied, quantity demanded, and size of the shortage or surplus?