1} What is the equilibrium price and quantity in this market? 15 the market efcient or not? Explain. 2} If the sandwich market is efcient, calculate the consumer surplus, producer surplus, and total surplus in the market? 3} If the sellers supply Elli] sandwiches per hour: What is the minimum price that producers are willing tn accept for the 2006' sandwich? Whatis the maximum price that consimiers are willing to pay for the EDGE sandwich? What is the situation in this market is the market efficient? Why or why not? 4] In the situation described in #3 of this problem, calculate the deadweight loss if any? itiat happens to total surplus in #3 compared to total surplus obtained in #1. E. PRODUCTION SUBSIDIIES {12 points] Farmers Urge Duterte to Look into Palay Price Drop Feeling neglected by the Department of Agriculture, farmers have raised their concern to President Duterte as palay {unhusked rice) prices continue to slide, leaving them with nothing to earn this harvest season. In a letter sent to Malacanang, the Samahang Industriya ng Agrilmltura {Sinag} is seeking the help of Duterte as farmers face low prices of palay at P11 per kilogram for wet and P14 a kilo for dry palay. "The 10W prices of palay means that our farmers will not be able to recoup their farm expenses during this cropping period and may force them to stop planting palay for good," Sinag chair Rosendo So said. Because of the situation, Sinag has requested the President to direct the DA to allot P35 billion to subsidize the farmgate price of palay at P4 per kilo for the approximately nine million metric tons of palay to be harvested this season. Source: The Philippine Star Global, October 13, 21120 1} Should the Philippine government subsidize farmers? Expiain. 2] How would a subsidy paid to rice farmers affect the price of rice paid by consumers, the marginal social cost of producing rice, and the price received by producers? 3] Would a subsidy make the rice market more efficient or less efficient? Explain. F. MORE. ON ELASTICITIES {it} points total) An increase in the price of a vital line of antibiotic drug for criticallyill patients from $30 to $30 per capsule reduced quantity demanded from 30,001] to 29,001] units