How would these question concerning Price Controls, Consumer Budget Constraints be figured out?

2) Draw a graph of a competitive market with an effective price oor, as shown in class. Assume best case scenario, Without overproduction or government purchases of excess goods. Label: quantity traded in the market, CS, PS, DWL and any excess demand or excess supply that exists in the market after the oor. 3) Suppose that the equilibrium price of bicycles is $500 and that the equilibrium quantity of bicycles is 600 per week. Further suppose that at this equilibrium price and quantity, the price elasticity of demand for bicycles is 2 and the price elasticity of supply is 1. The government is considering imposing a price ceiling of $400. Given this information, predict the level of excess demand that would result. Hint: Calculate the percentage change in price that would result from the imposition of the price ceiling. You can then use that information as you did in previous elasticity problems. 5) Consider the market for sh. Suppose supply is given by Q5 = 10 + 3P and demand is given by QD = 60 2P. (Price is measured in $ per pound and quantity is in pounds per month.) a. Using this information, solve for the equilibrium price and quantity traded in this market. b. Calculate the price elasticity of demand and the price elasticity of supply at the equilibrium price and quantity. c. Specify whether each is inelastic, elastic or unit elastic at this point. d. Suppose the government is considering imposing a price ceiling to reduce the price of sh. i. State a price PC that would be effective as a price ceiling. ii. Would there be excess supply or excess demand under the price ceiling? Use the supply and demand mctions (evaluated at PC) to calculate how much. iii. Calculate the CS, PS and DWL that would result under the price ceiling. (Assume the bestcase scenario, when relevant.) iv. Use a graph of the market for sh to depict your answers for parts i. - iii. e. Show that you could have obtained the answer to d.ii. (without using the supply or demand functions) if you had only been given the following information: the equilibrium values from part a, the elasticity measurements from part b, and the price PC from d.i