Consider the market for butter in Saudi Arabia. The domestic demand function is given by

=102 ,

The domestic supply function is

=2 2.

(a)Suppose there is a price ceiling of 2 (SAR).

i.What is the excess demand or excess supply, if any (how much)? .

ii.What is the deadweight loss (how much)?

(b)Suppose the government is going to charge 1 (SAR) per unit of butter on the suppliers.

i.What is the consumer surplus?

ii.What is the producer surplus?

iii.What is the government revenue?

iv.What is the deadweight loss?