Assume the market demand and supply curves for a good are given by
Qd = 60 - 3 P and Qs = -20 + 2 P
a. Solve algebraically for both the equilibrium price and equilibrium quantity in this market. Show all steps in your derivations.
b. Suppose the current market price of this good is P=$17. Determine (algebraically) the quantity demanded, the quantity supplied, and the magnitude of any market surplus or shortage at this price. Show all work in your calculations, and clearly state whether a surplus, shortage or equilibrium occurs at the current market price of P=$17.