Question: Given the following demand and supply function for the hypothetical economy (Using graphs and showing the solution steps): = 9 = 2 a) Solve for

Given the following demand and supply function for the hypothetical economy (Using graphs and showing the solution steps): = 9 = 2

a) Solve for equilibrium variables (5 Points) b) Determine the consumer, producer and total surplus (5 Points).

c) Using the price floor of $8, determine the consumer, producer and total surplus (10 Points)

d) In the existence of $8 price floor, what would be the deadweight loss and the excess supply (or demand) in this economy

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