1. (Chapters 3 and 4) Suppose that the demand for used textbooks in Halifax is given by the equation Q= 90- 2P, while the supply of used textbooks is given by the equation Q where quantity is in terms of thousands of books per year and price is in terms of dollars per book. (Note: Throughout this question, round to one decimal place when needed.) a. Solve for the equilibrium price and quantity in this market. b. Draw the demand and supply curves on the same graph, putting quantity on the horizontal and price on the vertical axis. Label each curve, each intercept, and the equilibrium price and quantity. c. Suppose that the price is currently equal to $20 per book. Wand 2 Show Q (labelled "A") and Q s (labelled "B") on the graph. Does the price of $20 result in a shortage or a surplus? What would we expect to happen to the price over time? Explain. d. Calculate the elasticity of demand at the equilibrium price using the point elasticity formula demand elastic, inelastic, or unit elastic? e. What is total revenue at the equilibrium point? Given the elasticity of demand from (d), wha will happen to total revenue if the price increases? 2. (Chapter 5) The relationship between price, quantity supplied, and quantity demanded of co is given in the following table: Price Quantity Quantity Quantity ($/tonne) supplied demanded supplied with (millions of (millions of a $20 tax tonnes) tonnes) (millions of tonnes) 0 0 120 10 20 100 20 40 80 30 60 60 40 80 40 50 100 20 60 120 0 a. Depict both the supply curve and the demand curve on a graph. What is the equilibrium pri What is the equilibrium quantity? b. Calculate the consumer surplus, producer surplus, and total economic surplus in the coal market. Suppose that a tax of $20 per tonne is now imposed on the producers of coal. c. Add the new supply curve to your graph. Once the tax is imposed, what are the new price an quantity? d. Calculate the new consumer surplus, producer surplus, and total economic surplus (includin government tax revenue) in the coal market. e. Calculate the deadweight loss (efficiency loss) accruing to the participants in the coal market