Assume that the Demand Function is P = 16250 - 6Qand Supply Function is P = 2000 + 3Q

Graph items 1-7

1. Determine the equilibirum price and quantity

2. Determine the CS (Colorthe area Red)

3. Determine the PS (Colore the area Blue)

Government provided P550.00 subsidy to producers.

4. What is the Pb?

5. What is the Ps?

6. How much is the Reseource Misallocation (RM)?

7. How much is lost from the society (DWL) (Color the area black)