M N P 0 R S Exam Security Strip - Do Not Remove or Adjust Score Drafting Sheet Question 2 Description (CK1, CK3, CC2, CC3, CCIT1) You are given the demand and supply equations of Pizza of a country as below: The demand equation is P=16-2Q and the supply equation is P=2+2Q where P is price and Q is quantity of Pizza. Question 2-a (CK1, CK3, CC2, CC3, CCIT1) Determine the equilibrium price and quantity Question 2-b (CK1, CK3, CC2, CC3, CCIT1) With the equilibrium price from (b), calculate the total area of the consumer surplus. Question 2-c (CK1, CK3, CC2, CC3, CCIT1) With the equilibrium price, calculate the total area of the producer surplus. 9 8 2 1 Question 2-d (CK1, CK3, CC2, CC3, CCIT1) Calculate the Price elasticity of demand at equilibrium point. 8 9 8 8 2 2 3 3 2 + Short