Consider the market for bikes in a college.

P = 300 - 4Q^D

P = 60 + 2Q^S

a.What is the equilibrium price and quantity of bicycles in this market?

b. If the government sets the price for bikes at $100, describe the affect this will have on the quantity sold, and indicate if this is a price ceiling or a price floor.

c.Draw the graph for this market in its initial equilibrium and in part b. (Your graph doesn't have to be perfectly to scale, but should be accurately labeled with prices and quantities, etc.)