1. Symbolic analysis of supply and demand: Thefollowing demand and supply functions providea relatively general description ofa market: Qd=AbP +cY (1) Q5 :0 +eP (2) where P is the price, Yis a variable denoting income, and ad and C2,, are the quantity demanded and the quantity supplied. The constants A, b, c, D, and e have values greater than zero. (8} (b) Identify the parameters, endogenous variables, and exogenous variables in the above system of equations. Derive expressions for the equilibrium market price (P*) and quantity (Q*) and illustrate your answers with a graph. Be sure to specify the values where the demand and supply curves intersect with the P-axis and Qaxis in the positive quadrant. Given your results from part (b), use calculus to determine the effect of a small change in income on the equnllbrlum price (P*). Set the expressions for ad and as from equations (1) and (2) equal to each other. This is the market equilibrium condition and thus, in this expression, we can think of the price as the equilibrium price. In equilibrium the price is a function, P*(Y), of Y. Differentiate both sides with respect to Y and solve for P'(Y). Find the wage of prices, in terms of A, b, & c, for which the price elasticity of demand is inelastic, i.e., e > 1. Hint: your equation will depend on Y