Supply function: Qs=P

Demand function: Qd=60-4p

Please answer the following questions using the equations above. Note! That while it is not necessary to show work, if you have the wrong answer I can give partial credit for showing your process. You can upload images to a different assignment in the test section called exam 1 written question.

1. Graph the equations (make sure to label the graphs appropriately and clearly) (2)
2. Find the equilibrium price and quantity (1)
3. Calculate the Consumer and Producer surplus for consumers and producers (1)
4. Explain what would happen if the government imposed a price ceiling of 10 dollars (Calculate the shortage or surplus in the quantity demanded). Then discuss how the total surplus would change, I don't want you to calculate the surplus, just discuss how it might change.