1. You are given that p=28-q is the inverse demand curve and p=12+3*q is the inverse supply curve.

a. What is the equilibrium price quantity pair if the market is perfectly competitive?

b. Illustrate the effect of a price floor set at $27 on a graph and solve for the size of the difference between the quantity supplied and quantity demanded.

c. Illustrate the effect of a price ceiling set at $15 on a graph and solve for the size of the difference between the quantity supplied and quantity demanded.