Consider a market characterized by the following demand and supply curves: Qd = 1600- 20p and Qs = - 900 + 30p
(a) Characterize the market equilibrium.
(b) If regulators decide to restrict payments by setting a price ceiling equal to $35, how many units will be sold or bought?
(c) Calculate the change in producer's surplus.
(d) Calculate the deadweight loss of the price ceiling.