You’ve been asked to determine the equilibrium price and quantity in the market for after-dinner mints, the kind found in many restaurants as you leave. Your research reveals that the demand schedule can be represented by the equation QD  150  200 P. You also find that the supply equation can be represented by the equation QS  100  300 P. In each case, the quantity is measured in thousands of mints per day.

a) Use these two equations to find the equilibrium price in this market. (Hint:

Remember that in equilibrium, QS  QD.)

b) Using the equilibrium price, solve for the equilibrium quantity demanded and supplied.

c) What if the market price is 20 cents? How would you characterize this market?