Consider the following sipply and demand curves Demand: Price = 1503Q.5 lricome P Supply: Price =2=Q+.25l Suppose income, 1 , is 60 , the price of good l,Pl, is 0 , and L, the cost of labor, is 120. Using this information. solve for the oquilibrizm price. QUESTION 2 Use the information from question 1 to solve for the equilibrium quartity. Suppose now the grvemment introduces a pri solloor or 90 . Would this price ragthiction create a surplus or shoitige? Surplus: Shortage Neither QUESTION 4 Find the quantity of the good demanded under the price restriction. What pescent of the tolal surplus is lost die to the price foor? Bo sure to multiply your antwer by 100 . Suppose now the cost of labor is increasing. by how much would labor costs hawe to increase for the price floor to no longer be binding? QUESTION 9 With the new labor costs, briefly describe why it would make sense for the constraint (ie., the price floor) to no-longer be bindirg For the toolbar, nress ALT+F10 LPCT or ALT +FN+F10 Macl