1. Demand function is given by: Qd=600-P, while supply function is given by: Qs=400+P. Q denotes quantity and P - price. a) find equilibrium (price and volume) b) explain what is going to happen if there is a price ceiling introduced at P=80. If there is any gap or surplus, calculate how big it is. c) assume that the government introduces tax equal to 50. Find new equilibrium and tax revenues. Show this change in a graph, mark the area that represents tax revenues. d) assume that the government introduces subsidy equal to 20. Find new equilibrium and cost of a subsidy. Show this change in a graph, mark the area that represents costs of a subsidy. (JEZMO) (14 #6)