Question 1: In the market of product A, the demand function is given as Q=300-2P, and the supply is given as Q=2P-60. (30%) I. Find the market equilibrium of this market (P*, Q*). ll. Compute the consumer surplus of this market. 111. Compute the producer surplus of the market. IV. Draw the demand and supply on a graph. Show the market equilibrium, the consumer surplus and the producer surplus. Question 2: There is an increase in the demand of product A, now consumers are buying 20 more units at any given price. (30%} I. Find the new market equilibrium. ll. What is the change in consumer surplus? 111. What is the Change in producer surplus? IV. Graphically show the change in CS. Question 3: Facing a stronger demand, producers now decide to apply a new production technology. The new technology would allow the producers to reduce the cost of production by $10 for all units they produce. (30%) I. Find the new equilibrium. ll. Calculate the new PS. 111. Show all three equilibriums on the same graph. Question 4. Is producer surplus the same as the profit the producers are getting? Why? (10%)