1. Are you able to show how in the example I provided (part f) the Demand and Supply curves were calculated. How did they get the price and quantity intercepts of 120 and 60 for demand and 14 for supply?

2. How do you get the 42.75 number?

f) Draw a graph of the situation above that is similar to either Figure 8-9 (for a tariff) or Figure 8-11 (for a subsidy). Calculate the consumer and producer gains or losses as well as government revenue or expenditure. Calculate the production and consumption distortions and the terms of trade loss or gain. Use a negative sign to indicate a loss 11.75 14.375 38.625 41.25 60