1. Price Floor Price 10 9 8 7 6 5 4 3 2 1 D 0 10 2o 30 4o 50 60 7o 80 90 100 Quantity a. Suppose this market exists as a free market without any government intervention and with no market failure. What will be the outcome for the market? In other words, what price will consumers be charged and will producers receive for each unit, how much of the good will be bought and sold, how much economic surplus will be earned by consumers, how much economic surplus will be earned by producers and how much economic surplus will be earned by society as a result of the free functioning of this market? b. What will be the impact of $4 price floor? (Please calculate new CS, PS, TS, Qs, Qd, Resource Misallocation, and DWL)2. Price Ceiling Reservation Value of Reservation Value of Buyer Buyer ($) Loaf Number Seller ($) 4.00 First loaf 0.60 3.75 Second loaf 0.75 3.50 Third loaf 0.90 3.00 Fourth loaf 1.00 2.25 Fifth loaf 1.25 1.50 Sixth loaf 1.50 1.35 Seventh loaf 2.00 1.20 Eighth loaf 2.75 1.00 Ninth loaf 3.50 10 0.75 Tenth loaf 3.75 a. What is the total surplus at the equilibrium before the price ceiling is imposed? b. After a price ceiling of $1.00 is imposed, there will be a shortage/surplus of c. After a price ceiling of $1.00 is imposed, there will be a deadweight loss of