1. Suppose the demand equation can be represent as QD = 100 -2P and the Supply equation can be represented as QS = -10 + P.

   a. Find the equilibrium price and quantity.
   
   b. At a price ceiling of $20, what is the QD and QS. What is the deadweight loss, consumer surplus and producer surplus amount?

Answer rating: 100% (QA)

a Finding the equilibrium price and quantity Set the demand Qd equal to the supply Qs 100 2P 10 P Combine like terms 3P 110 Solve for P equilibrium pr... View the full answer