3. The U.S. Department of Agriculture (USDA) is interested in analyzing the domestic market for corn. The USDA's staff economists estimate the following equations for the demand and supply curves: Qd = 1,600 - 125P Qs = 440 + 165P Quantities are measured in millions of bushels; prices are measured in dollars per bushel. a. Calculate the equilibrium price and quantity that will prevail under a completely P O AP free market. ( Hint: elasticity formula: E = (") ( ) ) or (P*/Q*) (dQ/dP) (5 marks) b. Calculate and interpret the price elasticities of supply and demand at the equilibrium values. (8 marks) c. The government currently has a $4.50 bushel support price (price floor) in place. What impact will this support price have on the market? Will the government be forced to purchase corn under a program that requires them to buy up any surpluses? If so. how much? (7 marks )