4. Suppose the demand and supply curves for goose-down winter jackets in 2018 were given as: Demand: P=20005Q and Supply: P = 500 + 5Q

(a) Find the equilibrium price and the equilibrium quantity in 2018. (b) Calculate the consumer surplus and producer surplus in 2018. Provide a graph of this market and show these areas on the graph. (c) Compute the price elasticity of demand and supply at the equilibrium price. Use the point elasticity formula for the computation. At the equilibrium point, is demand elastic, unit elastic, or inelastic? Explain your answer. Because of an extremely cold winter in 2019, the demand for goose-down winter jackets increased greatly. The result of this increase in the popularity of goose down winter jackets is that at every quantity consumer are now willing to pay $500 more per jacket. The supply of goose-down winter jackets did not change. (d) Without doing any calculations, please explain in words what would happen to the equilibrium price and the equilibrium quantity in 2019 compared to those values in 2018. (e) What is the equation for the demand curve in 2019? What is the new equilibrium price and the equilibrium quantity? (f) Illustrate the new graph of 2019 and shade the consumer surplus and producer surplus areas. (g) Illustrate the effect of COVID 19 on demand and supply of winter jackets (and equilibrium price and quantity) in the winter of 2020