Show the supply and demand and the equilibrium price

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Reference no: EM131076309

Suppose that the demand curve for some product is P= 100-5Q_D, where P is the Price per unit (in dollars) of the product and Q_D is the quantity demanded in a period. Suppose that the supply curve for the product is P=5Q_S. where Q_s is the quantity supplied in a period. Show the supply and demand and the equilibrium price and quantity in this market in a diagram. With the aid of a diagram, carefully explain what would happen in this market if the government were to impose a price floor of S80 per unit in this market (specifically, calculate the size of any surplus or shortage and specify the amount that would be traded in the market).

Reference no: EM131076309

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