Question 1: Assume we are given a demand schedule that is represented by P = 200,  5Q and a supply schedule where P = 110 + 10Q, where P = Price and Q = Quantity.

What is the equilibrium price and quantity shows all of your work.

Question 2: Dairies make low-fat milk from full-cream milk. In the process of making low-fat milk, dairies produce cream, which in turn makes ice cream. In the market for low-fat milk, the following events occur:

a) The wage of dairy worker rises