A microeconomic study of the market for product X found the following supply and demand equations: Supply: = 10 + 1/100 Demand: = 100 1/100 Where P is price in the local currency and Q is sales volume in tons / week. Questions:

a) What is the market clearing price and quantity.

b) If the government determines the price of good X at 40/ton, will a deficit or surplus take place? And what is the amount of that surplus or deficit?