2. Consider a competitive market for which the quan- tities demanded and supplied (per year) at various prices are given as follows: PRICE DEMAND SUPPLY (DOLLARS) (MILLIONS) (MILLIONS) 60 22 14 80 20 16 100 18 18 120 16 20 a. Calculate the price elasticity of demand when the price is $80 and when the price is $100. b. Calculate the price elasticity of supply when the price is $80 and when the price is $100. c. What are the equilibrium price and quantity? d. Suppose the government sets a price ceiling of $80. Will there be a shortage, and if so, how large will it be?4. Jon is always willing to trade one can of Coke for one can of Sprite, or one can of Sprite for one can of Coke. a. What can you say about Jon's marginal rate of sub- stitution? b. Draw a set of indifference curves for Jon. c. Draw two budget lines with different slopes and illustrate the satisfaction-maximizing choice. What conclusion can you draw