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Suppose the supply and demand for milk is described by the following equations: Qd=600-100P, Qs = -150+150P, where P is price in dollars . Qd is quantity demanded in millions of gallons per year.
A. Create supply and demand tables corresponding to these equations.
B. Graph supply and demand and determine equilibrium price and quantity.
C. Confirm your answer to by solving the equations mathematically.
D. Would a govt. set price of $4 create a surplus or a shortage of milk? How much? Is $4 a price ceiling or a price floor?
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