Suppose the market for ice cream is now characterized by the following equations:

QD=100-P

QS=-20+P

1. Solve for the equilibrium price and quantity.
2. Graph supply, demand, and the equilibrium found in part A).

3. Suppose the government imposes a price ceiling on ice cream. For what values of P will the price ceiling be binding (ie. affect the equilibrium found in part A))?

4. Suppose the price ceiling occurs at P=30. Determine the equilibrium price and quantity. Is there excess demand or supply with the price ceiling imposed?