7. Given the following demand and supply functions solve for the market clearing price (assuming prefect competition). Give your answer to 2dp, do not add a currency symbol.

Qd = 100 - 1.0p Qs = 16 + 6p

8. If the price of a good is above the equilibrium price...

Select one:

a.the quantity demanded is equal to the quantity supplied and the price remains unchanged.

b.there is a surplus and the price will rise.

c.there is a shortage and the price will fall.

d.there is a surplus and the price will fall.

e.there is a shortage and the price will rise.