The government is considering three alternative policies to restrict alcohol drinking. The supply and demand curves are as follows: Demand: Qd = 300 - P Supply: Q:=P/2 where P is measured in cents and Q is measured in millions of bottles per month. a. Graph the supply and demand curves. Identify the P and Q intercepts for the demand curve and the P and Q intercept for the supply curve. Solve for the equilibrium price and quantity. Show the equilibrium in the graph. [10 marks]

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Jamar FerryLv2

29 Oct 2018

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