3. Suppose a confection company conducts a market research. They found market demand (Qa) and supply (Q)functions for their snack are as follows, where P-price ($ per box). Q-600-20 P (thousand boxes) Q.-120 + 20 P (thousand boxes) I a. What is the market equilibrium price of this snack? At market equilibrium, how many boxes would be sold? b. If this company tries to price the same snack at $15 per box, what will be quantity demanded and quantity supplied at this moment? The company can achieve a market equilibrium again? 4. Suppose in the organic honey market, the demand and supply for organic honey are Q-25-5 P (million bottles) Q-4+2 P(million bottles) Here P is the price of organic honey (5/bottle) To improve the revenue of honey producers (bee farmers), the government (USDA) is trying to set up a price floor. Now USDA imposes one price floor (a minimum market price) at $4/bottle. What the policy impact of this price floor? Does the price floor work? 5. The price elasticity of demand for one video game by EZ-Game is 2.5 at the current price of $30 and with 100,000 online subscribers. Now suppose the company tries to lower the price to $27 (three dollars lower). Tip: the elasticity should be a negative number. a. How many new subscribers would purchase the game? b. How much their revenue of the game would change? 6