1. Market demand is Q = 5,000 - 3P. Market supply is Q = 2P. The original equilibrium price and quantity in this market are P = $1,000, and Q = 2,000. For each of the following cases, show the effect of each policy on the market. You need to show this both graphically and mathematically, and both calculate and identify clearly on the graph (colors are good!) CS, PS, and DWL. Please show work for original CS, PS as well.

a. The government limits quantity to 1,000 units.

b. The government imposes a price ceiling of $500. (Ignore the possibility of black markets.)

c. The government imposes a price floor of $1,200 and buys the surplus.

d. The government imposes a price floor of $1,200 and does not buy the surplus.

e. The government sets a target price of $1,200 and makes up any deficiency in firm revenues.