1. The market for rice in an East Asian country is ilescrihetl hy the following; Q = 23-4]: Q3 = 12+fip a. Assume the market is perfectly competitive, Find the ratchet equilibrium. Calculate producer and consumer surplus. {" For the PS and CS calculations in all sections of this question, if you can't do them numericelh, partial credit will be given if you clearly describe what calculations need to be performed and demonstrate the considerations graphically.) {1" points} h. Suppose there are no trade barriers end the worltl price of rice is $3. Will this country import or expert rice? How much? Calculate producer and consumer surplus now. Is society hotter or women: off? Explain your answer carefully. {8 points] c. Assume that the government receives pressure to subsidize domestic pro- ducers by $1 per unit of rice. Show the effect of this on the economy. Will the subsidy be effective at making the society better off? Think through the total sociel welfare calculation very carefully. [12 points)