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Assume that the market for bread in a small and isolated community is described by the following two equations: 05 = 15 +15l]*P and GD = EDD, where 05 represents quantityr of bread supplied n loaves], GD denotes [quantityr of bread demanded {in loaves}, and F" is price [in dollars]. The local council, in an attempt to shore up the public nances, decides to place a per unit tax in this market. After the new tax has taken effect, the consumers are paying 8? for each loaf of bread. Based on this information, we can conclude that the per unit tax is: The market for Brussels Sprouts in California is represented by the equations below. Q is measured in thousands of bushels. P =9 - Qd P = 2Qs a. What is the equilibrium price and quantity of brussels sprouts (in thousands of bushels)? b. Graph the two equations, labeling the axes (with units) and equilibrium price and quantity. Imagine the government of California is considering placing a price floor of $8 per bushel on brussels sprouts. C. Is this price floor binding? How do you know? d. What are the quantities supplied and demanded with the price floor? [Hint: you can find Qs and Qd by plugging the new price into the supply and demand equations] e. What type of disequilibrium situation is created, and what is its magnitude? How many thousand bushels of brussels sprouts will be sold under this policy? Now let's look at how Consumer, Producer, and Total Surplus are affected by this policy. f. Without calculating the values, state whether each of CS, PS, and TS will increase, decrease, or stay the same. [Hint: Looking at the areas on the graph can help to determine the changes.] g. Which parties are made better off by the price floor? Who is worse off? h. What is the dollar value of the deadweight loss caused by this policy? [Hint: You can either use the graph to find the area of the triangle, or calculate the change in total surplus.]