The Department of Agriculture and Water Resources is interested in analysing the domestic market for corn. Their staff economists estimate the following equations for the demand and supply curves:

QD= 1,000 -100P,

QS= 500+100P

a. Write the inverse demand and supply function(3 marks).

b. Find equilibrium quantity and price in the market(2 marks).

c. Calculate the value of consumer surplus (CS) and producer surplus (PS) at equilibrium?(4 marks)

d. If the government applies a minimum price of $3 per bushel, determine the amount of the shortage or surplus that would result.(3 marks)