2. Suppose that the demand curve for gasoline in San Diego is described by the equation F = 5 00 - IOQ, Where Q represents the number of gallons consumed. The supply of gasoline is given by P = 40 + IOQ. In both equations P is measured in cents and Q in millions of gallons per month. a. Assume that the market is perfectly competitive. Find the equilibrium price and quantity. Graph the demand and supply curves and label the graph With all the relevant points, including the equilibrium price and quantity. b. Compute the consumer and producer surpluses in competitive equilibrium. Shade the corresponding areas in the graph from part a. c. Now suppose that the government imposes a price ceiling of $1 (100 cents) on gasoline. Compute the new quantity sold at that price, as well as any shortages or surpluses. Show them in a separate graph. (1. Compute the deadweight loss created by the price ceiling compared to the competitive outcome. Shade the area corresponding to DWI. in the diagram from part c. e. Now assume that instead of the price ceiling, the government imposes a tax of 20 cents on the sale of each gallon, paid by gas stations (the sellers in this market). What prices do sellers receive and what prices do buyers pay after the tax is imposed? How is the tax split between buyers and sellers? Explain. f. For the tax in e., calculate consumer surplus, producer surplus, tax revenue, and deadweight loss. Be sure to check that these all account for the total \"size of the pie\" that you found in part b