A market demand and supply functions are as follows: Qd = 500 - P/4, and Qs = P/2 - 100.

For parts 2-5, use ONE graph.

1. Determine the equilibrium price and quantity.

2. Graph the inverse demand and supply curves with Q on the horizontal axis and P on the vertical axis. Clearly label all axes, curves, intercepts, and the equilibrium price and quantity values

3.Assume the government sets a rule that the selling price cannot go above $400. What kind of a price restriction is this? Answer with two words. Draw this price restriction on your graph in part (2) and label it.

4. Will this government restriction cause a shortage or surplus? Answer with one word. Calculate this value and show it on your graph in part (2).

5. what is the deadweight loss with the price restriction in place? Calculate this value and show this area on your graph in part (2)