Suppose the demand schedule in a market can be represented b…

Suppose the demand schedule in a market can be represented by the equation Qd = 400 – 10P, where Qd is the quantity demanded and P is the price. Also, suppose the supply schedule can be represented by the equation Qs = 100 + 10P, where Qs is the quantity supplied.   The equilibrium market price equals [marketprice], and the equilibrium quantity equals [marketquantity] in this market.   Suppose the government now imposes a price ceiling of $10. The price ceiling is [bindingnonbinding] (answer: binding or nonbinding).   Under the $10 price ceiling, the quantity demanded equals [quantitydemanded] according to the demand schedule, and the quantity supplied equals [quantitysupplied] according to the supply schedule.   The price ceiling creates a [shortagesurplus] (answer: shortage or surplus) of [amount] units.