Consider a competitive market for kombucha.

Demand is represented by the following equation: Qd = 100 - 6P,

and supply is represented by: Qs = 50 + 4P.

• Evaluate the free market by finding (calculating) the equilibrium price and quantity.

b. Evaluate the market if government intervention imposes a price of $3, and then evaluate the market if government intervention imposes a price of $8. (You must fully disclose your calculations)

c. What is the state of the market at a price of $3? What is the state of the market at a price of $8?