Suppose the market for potatoes has been estimated to have these supply and demand relationships:
Demand: Qᴰ-100-50P+50Pc
Inverse Supply: Q ˢ =50P-100
where P represents price of potatoes, Q represents the quantity of potatoes, and Pc is the price of carrot. Let Pc = $2.
a) Derive the market equilibrium price and quantity for potatoes. Illustrate your results in a diagram.