3. Demand and supply function for good X is given as follows: Qd = 1600-20P; Qs = -800+40P

a) Find the equilibrium price (5 marks)

b) How will demand and supply change if:

a. A ceiling price is set at $30 (10 marks)

b. A floor price is set at $50 (10 marks)

c) Explain why governments institute price ceilings and floors. (15 marks)