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QX = 100 - 0.4PX
QX = 40 + 0.2PX
a. At what price level would demand for good X equal zero?
b. At what price level would supply of good X equal zero?
c. What is the equilibrium market price for product X?
d. What is the equilibrium quantity demanded and supplied
e. Government imposes a price floor of $120. Analyze the impact of this floor on price, quantity demanded and supplied. Would this price floor create a surplus or deficit of this product in the market?
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Government encourage a decision to expand? How would it affect the reputation of the business?
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