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3. Given the demand and the supply functions below: Supply function: P=0.2Q - 40 Demand function: P=-0.2Q + 120 A. Draw the demand and supply

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3. Given the demand and the supply functions below: Supply function: P=0.2Q - 40 Demand function: P=-0.2Q + 120 A. Draw the demand and supply curves, and find the equilibrium price and quantity. B. Suppose the cost of production increases by $7 per unit. () Find the new supply curve, the new equilibrium price and quantity. ii) Calculate the elasticity of demand between the new and old equilibrium price

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