. The demand and supply for sneakers are

P=800-2Q

P=-40 +8Q

a. Calculate the equilibrium quantity and price

b. Suppose the government sets P=720. Is this a price floor or a price ceiling? Will

there be surplus or shortage? How much? Show your calculations algebraically and

show on a separate graph.

c. Suppose the government sets P=560. Is this a price floor or a price ceiling? Will

there be surplus or shortage? How much? Show your calculations algebraically and

show on a separate graph.