Demand:

$Q_d=80-2P$

Supply:

$Q_3=4P-100$

Where $Q_d$ is the quantity of the commodity demanded at price $P$ and $Q_s$ is the quantity of the commodity supplied at price $P.$

A: Using the above information for the demand and supply equations, numerically solve for the $(1)$ vertical demand intercept $($the choke price where the quantity demanded is equal to $0),$ the $(2)$ horizontal demand intercept $($the quantity demand when the price is $0),$ and the $(3)$ vertical intercept value for the supply equation $($supply price when the quantity supplied is $0).$ Using these calculated values graph the $(4)$ demand and $(5)$ supply curves for the above commodity.

B: Solve for the market equilibrium price and quantity values and insert them along the graph axis you created in part A$.$

C: Calculate the numerical values for the consumer surplus and the producer surplus for the figure you created in part A$.$

D: Identify the consumer and producer surplus on the figure you graphed and carefully define the concept of both consumer and producer surplus. Explain why in the absence of externality a competitive market maximizes the sum of consumer and producer surplus.

E: Numerically calculate total producer cost at the equilibrium quantity. Carefully identify the area of total cost on the figure you created using letters to identify the area.

F: Numerically calculate total consumer willingness to pay $($total consumer benefit$)$ for the equilibrium level of the commodity. How does total consumer willingness to pay differ from the concept of consumer surplus?

G: Derive the price dependent demand and supply system. Show you work!

Answer: $($this time only I will supply you with the functions, but make sure you can derive them!$)$

Demand: function!