3. What is the law of supply? Give two examples of how you have observed the law of supply at work.

4. If the demand and supply curve for the textbook are:

Demand = 200 - 10P,

Supply = 50 + 15P

Where P is the price, what is the number of textbooks bought and sold at equilibrium? In other words, what is the equilibrium price (P) and quantity (Q)?

5. Explain the impact of:

a. A rent ceiling set below the equilibrium price.

b. A price floor set above the equilibrium price.