Consider the following demand and supply functions.

P = 250 - 0.05 Q^D.p=1/30*Q^S+1000/30

a)Calculate the quantities demanded and supplied, and calculate the price elasticities of demand and supply at the following prices:

1.P = 150; is this an equilibrium? Why? (Excess or shortage)

2.P = 100; is this an equilibrium? Why? (Excess or shortage)

b)Based on question a, calculate the price elasticities of demand and the price elasticities of supply at those prices. does the answers support the theory about price elasticity (supply and demand) at higher and lower prices?

c)Find the equilibrium condition (price and quantity) and graph the market and all important points. Calculate the consumer surplus, the producer surplus, the government surplus (if any), and the deadweight loss (if any).

d)Starting from question c, please find the new equilibrium condition when you simultaneously shift the demand curve to the left (by 500) and the supply curve to the right (by 500). (Do not calculate the new surpluses).

e)Starting from question c, let us assume a price floor of P = 110. Please analyze this condition: price, quantity, consumer surplus, producer surplus. (Hint: is this price floor binding? You may not need to calculate).

f)Starting from question c, let us assume that the government imposes a quota of Q = 2500. Please calculate all the variables of the new condition. Please graph the new condition, and show and calculate the new consumer surplus, producer surplus, government surplus (if any), deadweight loss (if any).

g)Starting from question c, let us assume that the government imposes a tax of t = 10 on the buyers. Please analyze the new condition by finding: price received by sellers, price paid by buyers. Graph the new condition and calculate the new consumer surplus, producer surplus, tax revenues (government surplus), and the deadweight loss (if any).

h)Starting from question c, let us assume that government gives a subsidy of s = 10 to encourage the use of this product. Please analyze the new condition by finding the price paid by buyers and the price received by sellers. Graph the new condition and calculate the new consumer surplus, producer surplus, tax revenues government revenues), and the deadweight loss (if any).