Q3: The market for peanuts is represented by Q = 74,000 - 120P and Q = 150P - 12,400 where Q is tons of peanuts and P is the price of peanuts per ton.

a) What are the equilibrium price and equilibrium quantity in this market? Show your calculations.

b) Suppose the government imposes a quota of 37,000 tons of peanuts in this market. What is the equilibrium price of peanuts? Explain or show how you arrived at your answer.

c) Suppose the government imposes a quota of 30,800 tons of peanuts in this market. What is the equilibrium price of peanuts? Explain or show how you arrived at your answer.

d) Suppose the government imposes a quota of 30,800 tons of peanuts in this market. Does a shortage or a surplus of peanuts exist AND if yes, what is its size? Explain or show how you arrived at your answer.