1.Assume society is transacting at equilibrium for some good "x" with the demand function Qd = -3p + 60 and the supply function Qs = 2P.

a.Calculate the amount of each consumer surplus and producer surplus in this market .

b.What if instead of equilibrium price, the price in this market was set at $10.What would be the amount of total surplus in this market.(You can do CS and PS separately or just find TS overall by itself, I think that is easier, but whichever you think is easier is fine with me)

c.Assume the government would like to increase consumer surplus for this good and thus has decided to give consumers an income subsidy which changes the demand equation to -3p + 80.Calculate how much is added to total surplus by this change (change from the original in "a" not from "b")

d.Generate a graph of parts a and c noting the area that makes up the change in total surplus in the market.(you don't need to include part b on this graph, note, if you were using a scratch graph for the above questions, please make sure this graph is easy to read and has all intercepts plotted.Do not shade, either use a color border for the area that makes up change in total surplus or use point to point notation)

e.What if INSTEAD of giving consumers the subsidy (so go back to your original demand curve) the government gave it to firms changing their supply curve to the equation 2P + 20, keeping the demand equation at its original function.What is the new amount of total surplus generated?