1. The overall demand for Australian wool isQD=5000-300Pand the supply of Australian wool isQS=2000+200P. What is the equilibrium price for Australian wool and what quantity will be sold at this price.
2. The Australian government wants to support Australian wool growers by keeping the market price above $5. How much wool does the government need to purchase to ensure this minimum price for Australian wool.
3. Suppose the supply of Australian wool falls by 20% because of a drought. What is the new equilibrium price and quantity for Australian wool.