A1-4. If the demand function for chicken is given by Qc = 100 .25Pc + 10Pt + 100M, where Qc is the quantity of chicken demanded, Pc is the price of chicken, Pt is price of turkey, and M is the average income of consumers, then we can conclude that chicken has a downward sloping demand curve, is a substitute for turkey, and is a normal good. Al-S. Imagine that a market for a good is characterized by the following supply and demand equations: QS=35+35P QD=10010P where Q3 and Q; are quantities in units and P is the price per unit. (3) Graph the supply and demand curves with quantity on the horizontal and price on the vertical axis. Be sure to calculate the P and Q intercepts for demand and the P intercept for supply. Calculate and illustrate the equilibrium price and quantity. [Hintz Show your work.] [5] (b) Calculate both the demand and supply elasticity around the equilibrium point. [Hint: you can use either the point method or the average arc (midpoint) method] [5] (c) If a regulator imposes a quantity restriction by granting quotas for 60 units of output to existing producers, what is the new price and quantity traded? Does this policy create deadweight loss (DWL) in the market? Briey explain and identify any DWL in your diagram. [5] (d) What is the value of a unit of quota? Illustrate in your diagram. What is the total value of all units of the quota? [5]