Problem 1 (10 points) Suppose the demand for milk in San Francisco is given by (2,; = 15 2P where (2,, is the quantity demanded, and P is the price of milk. Also, suppose the supply of milk is given by Q, 2 BF 10, where Q, is the quantity supplied of milk. a. (2 points) On a single graph, show both the demand and supply curves. Be sure your graph is labeled correctly. Put the price on the Y-axis and the quantity on the X-axis! b. (2 points) Calculate the equilibrium price of milk and the equilibrium quantity of milk in San Francisco. Show your work. c. (2 points) On the graph above show the consumer and producer surplus. d. (4 points) Milk powder is used in milk production. Let's assume the price of milk powder increases. What happens to the demand, supply, and equilibrium for milk? Explain and show on the graph