2. The market for bagels in Philadelphia is perfectly competitive. In Philadelphia, the daily demand for bagels is Qa = 15,000 - 5,000P, which is graphed as D in the figure below. The industry supply of bagels in Philadelphia is Os = -6,000 + 10,000P, which is graphed as S in the figure. 3.00 Price of bagels (dollars) 2.00 S 1.00 0.60 D 5,000 10,000 15,000 Quantity of bagels (per day) a. What is the market-clearing price of bagels in competitive equilibrium? How many bagels are bought and sold daily in Philadelphia? (You can solve mathematically using the equations for demand and supply, or you can use the demand and supply lines in the figure, which are drawn precisely to scale.) b. Explain why the Philadelphia bagel market is expected to achieve productive efficiency in competitive equilibrium. c. Suppose that Philadelphia bagel businesses charged a price of $2.60 and sold 2,000 bagels per day. Explain carefully why society would benefit from an increase in bagel production.d. Suppose that Philadelphia bagel businesses produced 10,000 bagels per day and charged a price of $1.60. Explain carefully why society would benefit from a decrease in bagel production. e. How does the market-clearing price found in part a serve to ration bagels to the consumers who place the highest value on them? f. Does the Philadelphia bagel market achieve social economic efficiency? Why