Question 4. The market demand for coffee is given by QD = 20 2P, and the market supply is given by s Q = 2 + P, where P is the price in $ per pound and the quantities are measured in million pounds peryean (a) Calculate the price, the quantity, the consumer surplus, and the producer surplus in the free-market equilibrium. (b) Show that the price the consumers pay for coffee will be the same under three policies: an excise tax of $6 per pound, a production quota of4 million pounds per year, and a price floor of $12 per pound. How will the consumer surplus differ in each of these three cases? (c) For which form of intervention will we expect the producers in the market to be the efficient suppliers (the ones with the lower production cost)? (d) Which of these three policies will the producers prefer? [Hintz compare the producer surplus under the three policies] (e) Which of these three policies lead to the lowest deadweight loss