Problem 1 Consider again "Purple Taco", the best fusion taco joint in town. The demand curve for its tacos is given by QD=100-1.8P and the supply is given by Qs=-10+1.3P. a) Find the price and quantity in the free market equilibrium. Price= 35.4 Quantity= 36.28 b) Calculate the consumer, producer and total surpluses. Consumer surplus= 1171.8 Producer surplus= 823.6 Total surplus= c) Calculate the price elasticity of demand and the price elasticity of supply at the market equilibrium. Price elasticity of demand= 1.7 Price elasticity of supply= 1.3 Now we live in the times of COVID-19 and indoor dining exerts a negative externality. Specifically, the External Marginal Cost of eating each taco is constant and equal to 18. Line up this way Mask UP H Town ! aft Purple Taco Menu Taco Beer