MicroEconomics University Level

Use the graph provided below to answer the following questions: Price ($) 500 450 400 350 300 250 200 150 100 D 50 100 200 300 400 Quantity of steel (thousands of tons) A) What is the equilibrium Price and Quantity? (2 marks) B) If price were to be set at $400, would the market have a surplus or shortage, and by how much? Additionally, how much is transacted at this price? (3 marks) C) If Price were to be set at $150, how would the market have a surplus or shortage, and by how much? Additionally, how much is transacted at this price? (3 marks) D) If a quota were to be in effect on this market at a quantity of 100,000, what would be the price and quantity exchanged? (2 marks) E) If there were to be a quota at quantity of 300,000, what would be the market price and quantity exchanged? (2 marks) F) Assuming the market is at equilibrium, calculate the price elasticity of supply from equilibrium price and quantity to a new price of $450. What type of elasticity is present? Show all your work. (4 marks)