1. Suppose that the demand for broccoli is given by Q = 1,000 - 5?, where Q is quantity per year measured in hundreds of bushels and P is price in dollars per hundred bushels. The long-run supply curve for broccoli is given by Q = 4P - 80. 9-0 are: e. f. Determine equilibrium price and quantity. What is consumer surplus at this equilibrium? What is producer surplus at this equilibrium? For the rest of the problem, suppose that the government instituted a $45 per-hundredbushel tax on broccoli. Compute the new equilibrium. How would the tax burden be shared between buyers and sellers of broccoli? What is the excess burden (dead weight loss) of this tax? 2. Mr. Hoff is the head of the taxi-driver's union in Big City. Having paid off the local politicians, he is in a position to inuence government regulation. The supply curve is completely elastic (Le. a horizontal line). In other words, any number of drivers are willing to provide taxi service at the cost of $20/hour. The demand for taxis is Q =1000 - 10P , where quantity is measured in hours. a. EDP-PP\" Mthout government regulation, what are the equilibrium quantity and price in the marketplace? What is the producer surplus in the absence of regulation? For an arbitrary (binding) quantity cap, 5 , find the producer surplus. What quantity cap maximizes producer surplus? What is the deadweight loss associated with this quantity cap