2) Now, consider the short run market for energy drinks in a perfectly competitive market with 20 firms. Imagine that the short-run cost function of each firm is C(q) = F + 0.5 q, where F> 0 is the fixed cost. Also, the market demand is given by D(p) = 60 - 10p. a) Find a formula for the quantity supplied by an individual firm for any given price p. b) What is the market supply at any given price p (i.e., S(p))? c) Draw the market supply and demand curves. Make sure you clearly label the intercepts and the slope of each curve. Next, solve for the market equilibrium price and quantity. d) Find the market producer surplus, the market consumer surplus, and the total surplus at the market equilibrium (Hint: The market consumer and producer surpluses can be found easily by graphing the market supply and demand curves and using the formula for calculating the area of a triangle). e) Now, imagine at the end of the spring semester, the government temporarily imposes a price ceiling of $1 on energy drinks as a way to help students stay up at nights and study for their finals. This means that no firm can sell energy drinks at any price higher than $1. This forces the market price of energy drinks to be $1. Find the quantity that is demanded and the quantity that is supplied at this price in the market. Is there a demand or a supply shortage at this price? How many energy drinks will be produced and consumed in the market at this price? f) For what price is the market demand equal to the quantity that the market supplies at p=$1? Use your answer to this question to find the consumer surplus after the price ceiling of $1 is implemented. Also, find the producer surplus after the implementation of price ceiling of $1. g) Does the price ceiling policy lead to a Pareto improvement over the market equilibrium outcome before the policy? Explain your reasoning in no more than two sentences