20Assessment%203%20(2).pdf 1/3 100% + ESTION 1: 35 marks; Word Limit: 400 words The demand for and supply of cashew nuts in Ghana are, respectively, given by Q = 12000-200P (1) O' = 7000 + 50P (2) Where P is price in dollars per kg, and Q is the quantity of cashew nuts. a. Using equations (1) and (2) draw the demand and supply diagram of cashew nuts. Correctly label the diagram. (i) Find the equilibrium price and quantity of cashew nuts. (5 marks) b. To encourage the consumption of cashew nuts, because of its nutrition properties, the government passed a price regulation law by which the price of cashew nuts was set at $18 per kg. Briefly explain the type of price regulation policy the government introduced. (2 marks) Calculate the quantities of cashew nuts demanded and supplied under the price regulation policy. (10 marks) ili. Write a brief comment about how the quantity demanded compares with the quantity suppled, and the efficiency of the cashew market after the price regulation policy. (3 marks) c. One year after the price regulation, the government allowed the importation of cashew nuts and imposed a tariff (tax) of $1 per kg of cashew nuts imported. Determine the quantities produced by domestic firms and purchased by domestic consumers. Show them on the diagram (7 marks) ii. How much tariff (tax) revenue did the government collect. (3 marks) ini. Calculate the inefficiency caused by the tax. Clear indicate your results on the diagram. (5 marks) VIE