1.The market for cookies is represented by the following supply and demand conditions:Q^D=1,000 - 200PandQ^S= 400P- 200, wherePis the price per box of cookies andQmeasures boxes per day.

a)Solve for the equilibrium price and quantity and then use supply and demand curves to illustrate your answer.

b)Suppose the government places a quota on cookies of 500 boxes per day. Solve for the equilibrium price and quantity and then use supply and demand curves to illustrate your answer.

c)Calculate consumer surplus before and after the quota.

d)Calculate producer surplus before and after the quota.

e)Calculate the deadweight loss (excess burden) from the quota.