The demand and supply functions of cooking oil in a small village in Malaysia is given as P = 40 - 0.5Q and P = 10 + 0.5Q, respectively. Q is the number of bottles a day. Solve for the equilibrium price and quantity in the cooking oil market. If the government implement a price ceiling of $15 per bottle to help low income families, compute the quantity traded in the cooking oil market. Calculate the shortage or surplus in the cooking oil market due to the price ceiling? If an illegal market exists for cooking oil, derive the black market price. Discuss your answers with a suitable cooking oil market diagram.

Quantity Price Total Cost 0 $100 $200 100 $90 $600 200 $80 $900 300 $70 $1,400 400 $60 $2,000 500 $50 $2,800 600 $40 $4,000