Market research has revealed the following information about the market for chocolate bars :
Demand schedule , qd = 1600 - 300p
Supply schedule, qs = 1400 + 700p
where q is quantity demanded / supplied and p is price.
(a) find out the equilibrium price and quantity in the market for chocolate bars.
(b) Support your answer with an illustration which shown the market equilibrium for chocolate bars, include the x and y intercepts of the curves and label them accordingly.
(c) Show and label the ‘shortage' and ‘surplus' in your graph