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Question 4 Assume the market for bananas is competitive (i.e., many buyers and many sellers/farmers). At the market equilibrium, the price is $3.5 per kilogram of bananas, and the quantity is 8,000 kilos. a) Using two side by side diagrams to demonstrate the market equilibrium for bananas and a representative farmer's prot-maximization point. b) Do you agree with following statement? \"At the competitive equilibrium, the total gains from trade is maximum and the allocation is Pareto efficient.\" c) Now suppose that all farmers get together to form a cartel and they agree to raise the price to $4.20 per kilo, and jointly cut production to 7,200 kilograms of bananas. How does this change in market structure affect the total surplus? (1) Comment on the price elasticity of demand for bananas