The Canola market of Canada is growing with a steady increase in the demand from world market. The inverse supply and demand functions at the beginning of this market are given as: PS = 400 10QS and PD = 1000 - 50QD a. 2 marks. What is the market equilibrium price and quantity for this market? What is the value of this market at that price? (value of the output Y =PQ) P*= 500 Q*= 10 Y= $5000 400 10Q =1000-50Q Or, 60Q = 600, Or, Q* = 10 P* = 400 10(10) = $500 b. 3 marks. This market is seeing an annual growth in the output by 20%. If the changes are due to demand shift, keeping the same supply function, what will be the new equilibrium price of the market? What is the value of the output at the new price? New P*= $520 Y= $6240 New Q* = 10(1.2) = 12, Using it in the Supply function, P* = 400 10(12) = $520 c. 3 marks. If the demand remains the same, is there any other way the market can achieve the expected growth of 20% in the output? What will be the market equilibrium price