Problem 3.
(5 points)
In a competitive market, the demand is, $Q_D = 381 - 1.1P$.
The supply of beef is $Q_s = -121 + 4.9P$, if $P > 121/4.9$.
Without any price controls, what is the equilibrium price?
Without any price controls, what is the equilibrium quantity sold?
What is the shortage if there is a price ceiling of $80? (Put "0" if there is no shortage.)
What is the surplus if there is a price floor of $100? (Put "0" if there is no surplus.)
Note: You can earn partial credit on this problem.