Consider the market for rental skis at Summit Lake Ski resort. Demand and supply are given by the following equations: P= 60 -1/2 P = 4+ 1/2 a. Find the equilibrium price and quantity in the market for skis b. Draw the Demand and supply curves for this market given the equations above. Calculate the consumer surplus and producer surplus at equilibrium price and quantity. Assume Demand increases and the new Demand curve is given by P = 80 - 1/2 D c. Draw the new demand curve and with the help of a well labelled diagram indicate the effect on: i. Change in consumer surplus ii. Change in producer surplus iii. Change in total surplus [Note: you don't have to calculate these areas or changes. Use your diagram to explain your answers