B. The market for wudgets is perfectly competitive. There are 100 buyers, each with a demand curve of q = 50 - 2P. There are 100 sellers, each with a cost function of C(q) = 4:72 - 50:; + 900. Assume each seller sells the same number of wudgets. (1) a. What is the market demand curve? Graph it as well as writing down the appropriate algebraic statements. b. What is the market supply curve? Graph it on the same graph as a. as well as writing down the appropriate algebraic statements. (2) a. What are the equilibrium price and quantity? Mark this point on your graph from (1). b. How many units does each buyer purchase? How many units does each seller sell? Does economics tell us how to match buyers and sellers? (3) a. Calculate profits for a firm. Will there be any exit or entry occurring in this market? b. If fixed costs rose to 1600. what price would exactly cover costs for this market? How many firms will remain in business if this happens? (4) Suppose a quantity tax of $1.25 is levied per wudget. Fixed costs are still 900. a. Solve for the new equilibrium price(s) and quantity. b. Calculate profits for a firm. Will there be any exit or entry occurring in this market