The demand function of a good is qD=2000-4P and the supply function is qS=5P+200.

**a)**Find equilibrium price and quantity.

**b)**Buyers receive a government subsidy of 50 for every good bought. Find the new equilibrium price and quantity.

Solution for a) 2000-4P=5P+200 P=200 Q=1200

Solution for b) 2000-4(P-50)=5P+200

9P=2000 P=222.22 Q=1311.11

Could anyone please show me how we get

**Q=1200**at

**a)**and how we get to

**P=222.22**therefore

**Q=1311.11**at

**b).**

Your help would be greatly appreciated!