Problem
1. Consider the following demand and supply schedules for a product:
Demand Schedule Supply Schedule Price per unit (P), ($) Quantity Demanded (Qd) , (Units) Price per unit (P), ($) Quantity supplied (Qs), (Units) 10 1100 20 450 30 600 40 750 35 475 60 1050
a) The demand and supply schedules represent linear demand and supply functions as follows: Demand: Qd = a + bP Supply: Qs = c + dP Find the values of a, b, c, and d, and write the equations for demand and supply.
b) What are the equilibrium price and quantity for this product in the market?
c) Calculate the size of excess demand (shortage)/excess supply (surplus) at the following prices: $15 and $45.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.