1. A producer of high-end headphones has produced for the Indonesian market for the last 30 years. Twenty years ago, in 2000, the demand curve wasQ_D= 870 2.72. The supply curve was given by:_S= 442.5 + 1.26.It may help answer some of these questions if you draw a rough graph of the situation.

A. What was the competitive market price and quantity in 2000?

B. What is the consumer surplus for this competitive equilibrium?

C. At a price of $100, what is the value of the unmet demand in the market? (i.e., what is the difference between the quantity consumers want to consume at that price and the quantity being supplied at that price?

D. Over the last twenty years, the annual income of the average Indonesian has grown. As a result, Indonesians demand these headphones 52% more in 2022 than they did in 2000. If the producer has not changed its production technology over that time, and the cost and supply situation has not adapted, how will this increase in income change the following?

i. Competitive market equilibrium price ii. Competitive market equilibrium quantity