Answer the following parts a and b.

a. Explain how buyers and sellers of a good behave when price is below its equilibrium level. When price is above its equilibrium level. (4 Marks)

b. Suppose the weekly demand and supply curves for used DVDs in New Zealand are as shown in the following diagram.

i. Calculate the weekly consumer surplus? (2 Marks)

ii. Calculate the weekly producer surplus? (2 Marks)

iii.Calculate the maximum weekly amount that producers and consumers in New Zealand pay to be able to buy and sell used DVDs? (2 Marks)