Suppose demand and supply are given by Qd = 40 - P and Qs = 1.0P - 10

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

Equilibrium quantity:

Equilibrium price:

b. Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus if a price floor of $35 is imposed in this market.

Quantity demanded: _____

Quantity supplied:_____

Surplus: _____

c. Determine the quantity demanded, the quantity supplied, and the magnitude of the shortage if a price ceiling of $20 is imposed in the market. Also, determine the full economic price paid by consumers.

Quantity demanded: _____

Quantity supplied: _____

Shortage: _____

Full economic price: $_____