Part A The local gas market is perfectly competitive with supply and demand given by the following QS = 30p - 60 QD = 105 - 3p 1. Suppose the market is unregulated. a. Find the equilibrium price and quantity. b. Calculate the consumer surplus and producer surplus at the equilibrium Find the effects of each of the following policies separately: 2. Suppose a tax of t=1.10 (per unit) is imposed on consumers. a. What will be the equilibrium price consumers pay (pC), the price sellers receive (pS), and the equilibrium quantity (Qt)? b. What is the deadweight loss from the tax? 3. Suppose a subsidy of s=2.20 is provided to sellers of gas. a. What will be the equilibrium price consumers pay (pC), the price sellers receive (pS), and the equilibrium quantity (Qsub)? b. What is the deadweight loss from the subsidy? 4. Suppose the government imposes a maximum gas price of $4.80 a. What will be the consumer surplus? Are consumers better off or worse off with the price ceiling (versus the free-market price)? b. What is the producer surplus? c. What is the deadweight loss