2. Using the demand and supply conditions given in Technical Problem 1, answer the following questions concerning consumer, producer, and social surplus in the New York City bagel market.

a. For the 8,000th bagel sold each day in NYC, compute the consumer surplus, producer surplus, and social surplus when the price of a bagel is $1.60.

b. Compute total consumer, producer, and social surplus when 8,000 bagels per day are produced and consumed at a market price of $1.60.

c. At the equilibrium price and quantity, compute social surplus. Is your computed value for social surplus in competitive equilibrium higher or lower than your computed value for social surplus at 8,000 bagels per day in part c? Is this what you expected? Explain.