1. Consider the demand and supply for eighth-ounce bags of high-quality cannabis flower. Suppose that the market for eighth-ounce bags of cannabis is competitive, with market inverse supply given by P = 10 + Q and market inverse demand given by P = 76 - 2Q. Where prices (P) are measured in dollars, and quantities (Q) are measured in thousands of eighth-ounce bags.

a. Solve for the competitive market equilibrium price and quantity of eighth-ounce bags of cannabis in this market and support your answer graphically (make sure to label all curves and relevant points).

b. Derive the consumer surplus, producer surplus, and total welfare