Suppose the market for gasoline is given by the equations:

Qd = 100 - 15P

Qs = 5P

Where P is in terms of dollars per gallon and Qd and Qs are in millions of gallons.

a. Graph this market and then find the equilibrium price and quantity.

b. Calculate the consumer surplus, producer surplus, and social surplus.

c. Now suppose the government imposes a price ceiling of $3 per gallon. Show

this result on your answer in (a).

d. Calculate the consumer, producer and social surplus, and then measure and

mark on your graph the deadweight loss, if any.