Suppose that the market demand for medical care is summarized by the demand function:
Qd = 250 - 2p
and the market supply is summarized by the supply function:
Qs = 50 + 3p
Calculate the equilibrium quantity and price, assuming no health insurance is available.
P*=16.66, Q*=50
P*=16.66, Q*=100
P*=20, Q*=110
P*=40, Q*=170