3a.Suppose demand and supply in a market can be expressed by these equations.

Qd= 40 - 0.5p

Qs= 15 + 2p

Calculate the equilibrium price and quantity.

3b. If the prevailing market price is 14 dollars, what are the new quantity demanded and the quantity supplied equilibrium levels? Use the QS and QD equations in question 3. solve the above equations using the price of 14 dollars and then State the market condition-shortage or surplus. Based on what the data shows from your calculations.