Analyze Impact Of Floor On Price Quantity Demand 549641

Suppose that we have the following demand and supply functions.

QX = 100 – 0.4PX

QX = 40 + 0.2PX

a. What is the equilibrium market price for product X

b. What is the equilibrium quantity demanded and supplied

c. Government imposes a price floor of $120. Analyze the impact of this floor on price, quantity demand and supplied. Would this price floor create a surplus or scarcity of this product in the market?