Question: 1- [Equilibrium and Efficiency] 20 points (10 points each) a-Draw a Supply and Demand diagram and determine the equilibrium price and quantity. Explain -

1- [Equilibrium and Efficiency] 20 points (10 points each) a-Draw a Supply

1- [Equilibrium and Efficiency] 20 points (10 points each) a-Draw a Supply and Demand diagram and determine the equilibrium price and quantity. Explain - using words- why the intersection of supply and demand is the equilibrium of a free marker? (Hints: You need to explain why any other pair of price and quantity can't be the equilibrium). b- Determine the Consumer, Producer, and the Total surplus of the market at the equilibrium. Graphically show that any deviation from the equilibrium causes a DWL. Explain your answer.

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