This question has graphs that you need to construct as part of your answer. Please go to this site to make your graphs: https://www.draw.io/ Start with a basic diagram and add in all the parts needed to make the correct graph for your answer. When you're done, save your work or take a screenshot and then attach the image file to the test question here before moving on. The markets for bananas, muffins and coffee are interrelated, and each market is perfectly competitive. 1. In the market for bananas, the equilibrium price is $1.00 per pound, and the equilibrium quantity is 1,000 pounds per week. Suppose the government imposes a price floor on bananas at $1.20 per pound, causing the quantity supplied to increase to 1,500 pounds per week. a. Would the price floor result in a shortage, a surplus, or neither? Explain. b. Calculate the price elasticity of supply if the price increases from $1 to $1.20. Show your work. c. Between $1 and $1.20 is the supply elastic, unit elastic, or inelastic? Explain. 2. Bananas are an input for muffins. a. Draw a correctly labeled graph of the market for muffins indicating the equilibrium price and quantity, labeled P0 and Q0, respectively. b. On the graph drawn in part 2a above, show the impact of an increase in the price of bananas on the muffin market, labeling the new equilibrium price and quantity P1 and Q1 respectively. c. On the same graph, completely shade the area that represents that change in the consumer surplus caused by the increase in the price of bananas. 3. In the market for coffee, the equilibrium price is $3.00 per cup and the equilibrium quantity is 100 cups per week. The cross-price elasticity of coffee with respect to muffins is -2. a. Are coffee and muffins normal goods, inferior good, complementary goods, or substitute goods? b. Assume the supply of coffee is perfectly elastic. Using the equilibrium price and quantity given above, draw a correctly labeled graph for the coffee market, and show the impact of an increase in the price of muffins on the coffee market. c. Given the original quantity of 100 cups of coffee per week, if the increase in the price of muffins is 10%, calculate the new equilibrium quantity in the coffee market. Show your work