Consider the following supply and demand curves in a generic market, in which quantities are expressed in units and prices in dollars: Supply: Q5 = 5p - 15, Demand: Q" = 20 - 2p Imagine three scenarios for this market: . Scenario 1: The market is in competitive equilibrium (benchmark scenario). . Scenario 2: The local government imposes a price ceiling equal to p = 4 in this market. . Scenario 3: The local government opens this small economy to trade with external markets, where the price is pw = 4. Calculate the price and quantities of equilibrium, the gains from trade, and the welfare effects of the policies (price ceiling or external trade) in each scenario. Then, use the numbers you found to complete the table below (you can upload an image of your own table). Hint: In the last two rows, compare de total surplus in scenarios 2 and 3 to the total surplus in scenario 1. Remember that you must show your work to get full credit in this and all other questions.3 (external Scenario: 1 (benchmark) |2 (price ceiling) trade) Quantity demanded Quantity supplied Price paid by consumers Shortage (if any) Imports (if any) Consumer surplus Producer surplus DWL (if any) none Welfare gain (if none any)