3. [15 marks] Assume the market for desktop computer (a normal good) is described in the diagram below, where price is in $ and Quantity is in desktop computer per month. Using the diagram below, answer the following questions. Show all calculations. 300 1 Price 275- 250- 225 200 175 150 - 125 100 -14 75 + 50 - 25 D' 25 50 75 100 125 150 175 200 Quantity a. The above market is in equilibrium with demand (D) and supply (S). Calculate the amount of producer surplus. Producer surplus is $_ b. If the supply curve is S and the demand curve shifts from D to D', what is the change in producer surplus? Producer surplus [circle the correct answer] increases / decreases by What is the change in producer surplus to existing producers (those who were already producing before demand changes)? Surplus of existing producers will increase / decrease by What is the producer surplus to new producers (those who were not producing before demand changes)?_