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Consider the following market supply and demand functions for onions:
qs = 2.5ps,qd = 100 - 0.75pd.
a. Solve this problem for the equilibrium price and quantity.
b. Put the supply and demand equations in the price-inverse form. Re-solve the equilibrium price and quantity and verify that the values are the same as in part a.
c. Solve this problem using Solver to maximize the difference between consumer and producer surplus.
d. Verify that the SP from the Solver sensitivity analysis is the same as the equilib- rium price found in part a.
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