Question 3: Figure 2 plots a supply curve. If you'd like to plot this supply curve yourself, the equationis Qs = 4 log,(p) + 8. a) If the demand curve for this market is Q; = 20 - p, what is the equilibrium price and quantity? The slope of the inverse supply curve at the equilibrium price is approximately 0.7. Plot a linear approximation of the supply curve with this slope that is tangent to the supply curve at the equilibrium price/quantity. c) If the demand shifts to Q; = 25 - p, find the new equilibrium price and quantity based on Figure 2 (or an equivalent graph you plot yourself). What would you have estimated the new equilibrium price and quantity to be if instead of using the actual supply curve, you used the linear approximation you plotted in part b? If the demand shifts to @Q; = 35 - p, find the new equilibrium price and quantity based on Figure 2 (or an equivalent graph you plot yourself). What would you have estimated the new equilibrium price and quantity to be if instead of using the actual supply curve, you used the linear approximation you plotted in part b? b e d e Microeconomics French - Spring 2024 e) Comparing the accuracy of the linear approximation in part c to the linear approximation in part d, what do you conclude about the accuracy/usefulness of making linear approximation of supply and demand functions?