Question:Suppose that the quantity demanded is, Qd is represented by the following equation: Qd=90-2p.

The quantity supplied is represented by the equation: Qs=P.

Suppose that the market price is $20

1. Is this market in equilibrium? Justify your answer by showing your work.

1. If this market is in equilibrium, graph it to show the equilibrium price (P*) and equilibrium quantity (Q*). If you believe that this market isnotin equilibrium,calculate the equilibrium price and equilibrium quantity (Justify your answer algebraically),andshow the P* and Q*in a graph.

1. Does this market experience a shortage or surplus when the market price is $20? Justify your answer algebraically and show the shortage or surplus in a single graph.Hint:the graph must show the market price ($20), the equilibrium price (if different from the market price), and the equilibrium quantity.