ONE (20 Marks) a) The market for Techno A2 phone is represented by the following functions: and Where P = Price of the Commodity in 000' KSH and Q = Quantity in number of pieces Required: (i) Identify the Demand and Supply function giving the reason for your answer (Show all your workings) (3 Marks) (ii) Determine the equilibrium price and quantity in the market (3 Marks) (iii) Estimate the producer surplus on the market and interpret it (4 Marks) (iv) Suppose that due to COVID-19 pandemic, the price of Techno A2 phone increased by KSH 4,000 from the equilibrium price estimated in (ii) above. Using the mid-point formula for elasticity, calculate the price elasticity of demand for Techno A2 phone. Provide an intuitive explanation of your answer stating if Techno A2 phone is a normal good on the market. (4 Marks) (v) Assume that the prevailing price on the market for Techno A2 phone is the equilibrium price. Would you recommend an increase in the price by KSH 4000? (Why or why not?) Explain using the concept of elasticity. (3 Marks) b) Using a well-labelled diagram, for demand and supply, describe the qualitative effect of the given shock on the equilibrium price and quantity in the competitive mangoes market in Kenya. Genetically modified mango plants that allow for much greater output or yield without increasing cost are introduced into the market