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Please help. fSuppose the demand curve for rice in China is given by the equation Qd=100-10P, where Q is in million tons per year and

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\fSuppose the demand curve for rice in China is given by the equation Qd=100-10P, where Q is in million tons per year and P is in thousand yuan per ton of rice. The supply curve is Q=20P-20. Suppose further that the government arranges for the farmers to supply a total of 40 million tons of rice a year, and it pays a fixed procurement price 2,000 yuan per ton. The government then sells the rice in the urban areas for 3,000 yuan a ton. a) (6 points) What will be the consumer surplus, producer surplus and government revenue under this scheme? b) (4 points) Is the scheme efficient? If not, what is the deadweight loss? c) (4 points) Do you expect a black market for rice to develop? If the government can stop farmers from selling rice outside the government procurement agency, but it cannot stop the urban residents from reselling rice, what do you expect the black market price to be? Under a \"household responsibility" system intended to boost production and alleviate shortages of food, the farmers still have to supply the earlier quota to the government for the same price, but now they are free to produce more than the quota, and they can sell the surplus in a free market. The government still resells the procured quota at 3,000 yuan a ton. d) (4 points) How much will the farmers produce? What will be the free market price? e) (4 points) Is the new system economically efficient? If not, what is the deadweight loss? f) (6 points) What are the consumer surplus, producer surplus, and government revenue under the new scheme? Who wins and who loses compared to the original system

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