Demand and supply can be represented by functional equation of Qd = a - bP and Qs = a + bP respectively, where Qd is quantity demanded, Qs is quantity supplied, a is where the demand and supply curves cross Price axis, -b is slope of the demand curve, +b is slope of the supply curve and P is price.

If you are given Qd = 3800 - 400P and Qs = - 2600 + 400P

a) Find the equilibrium Price and equilibrium quantity (note: show your working

clearly)

b) Sketch the demand and supply curves in one diagram and show the equilibrium

point.