Question: 3. (25 points 5 each) Suppose the graph below shows the market of headphones. Answer the following question: p. $ per unit P3 .................. Supply

3. (25 points 5 each) Suppose the graph below shows the market of headphones. Answer the following question: p. $ per unit P3 .................. Supply C .............. D E - p, Price ceiling e2 F Demand QS = Q2 Qd Q, Units per year a. Suppose that inverse demand function is p = 100 - 2Q and the supply function is Q - p - 10. Calculate the equilibrium price and quantity (point e1) . b. Calculate the consumer and producer surpluses. c. Suppose the government enforces a new policy that sets the maximum prices of a headphone at $30. Calculate the new quantity produced. (point ez) d. Calculate the deadweight loss. e. Calculate the excess demand

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