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Assume the following demand and supply relationships for American cheese sold in a "model market" in...

Assume the following demand and supply relationships for American cheese sold in a "model market" in New York. Price is expressed in dollars and quantity is expressed per pound of cheese.

Demand: Q = 460 - 20P

Supply: Q = 100 +16P

(a). What is the equilibrium Price? What is the equilibrium quantity?

(b). Now assume that a Pandemic sets in and the government fixes the price of cheese at $8.00 per pound. What will be the market outcome?

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