1. Imagine a competitive market with supply and demand: P =10Q S and P =150 5Q D (7pts) a) What are equilibrium price and quantity? (1pt) b) What are...

1. Imagine a competitive market with supply and demand: P=10∗Q^S and P=150−5∗Q^D (7pts)a) What are equilibrium price and quantity? (1pt)b) What are consumer and producer surpluses? (2pt)c) If the gov't imposed a price floor of $120, what quantity is purchased in the market? (1pt)d) If the gov't implements a price support policy that raises the price to $120, how much will be sold in the market? How much will be purchased by consumers and how much by the gov't? How much will the price support program cost the gov't? (4pts)2. In the competitive market with supply and demand: P=8∗Q^S+4 and P=172−6∗Q^D (6pts)a) What are equilibrium price and quantity? (1pt)The gov't imposes a specific tax of T = $4. Let Pb be the price paid by consumers, let Ps be the price received by producers, and assume the firm pays the gov't, so Ps=Pb-T.b) What is the new quantity bought/sold? (2pts)c) What are Pb and Ps? (2pts)d) What is the tax revenue? (1pt)3. A monopolist sees market demand of P=200−3Q , giving her a marginal revenue of MR=200−6Q. Marginal costs are given as MC=10+4Q .a) What quantity should the monopolist produce to maximize her profits? (1pt)b) What price will she charge? (2pts)c) What is the deadweight loss? (Remember, in a competitive market, the marginal cost doubles as thesupply curve.) (3pts)- Please answer all three questions and show all work so I fully understand how each problem is solved. Also, please check the attached document for verification on the problems. Let me know if you have any questions. Thanks!