You know that you and your friend are facing the following demand for your good: Q_d=90-2*P and your supply is equal to Q_s=10+3*P.

1. Complete the following table and state the equilibrium at the market you are working:

Price	Demand	Supply
0
2
4
6
8
10
12
14
16
18
20

1. Graphically find quantity and price equilibrium.
2. Mathematically compute the equilibrium.
3. If the government decides to set a price ceiling equal to $20, what will happen in this market?

Answer rating: 100% (QA)

To solve the problem we need to compute the demand and supply for different prices find the equilibrium price and quantity both graphically and mathem... View the full answer