Read instructions carefully and follow instruction to the tea, and answer question 2 and 4 show work in full detail on paper with formula and how to solve. Question 2 is the question that has the graph, please doo this quickly and answers in full detailed sentences.

Question 4 (8 points) In the fictional economy of Econland, where you've been hired as the Chief Economist, the market for fruit can be defined by the following demand and supply functions: QD =90-3P QS = 12+5P a) Solve for equilibrium price and quantity in the market for fruit in Econland (keep answers accurate to 2 decimal places). [2 marks] The President of Econland would like to be re-elected. As part of her re-election campaign, she aims to keep fruit prices low. She proposes 2 different policies, and asks your opinion on both. Policy 1: a price ceiling of $10 Policy 2: a price ceiling of $8 b) Solve for equilibrium price and quantity in the market for fruit under Policy 1. Is there a shortage/surplus in this market? If so, by how much? [3 marks] c) Solve for equilibrium price and quantity in the market for fruit under Policy 2. Is there a shortage/surplus in this market? If so, by how much? [3 marks] Answer the following questions based on the graph that represents JR's weekly demand for ribs at Judy's Rib Shack. a. At equilibrium price, how many ribs would JR be willing to purchase? (1 mark) b. How much is JR willing to pay for 20 ribs? (1 mark) c. How much would JR's consumer surplus be at the equilibrium price? (1 mark) d. At the equilibrium price, how many ribs would Judy be willing to sell? (1 mark) e. How much must the price of ribs be for Judy to supply 20 ribs to the market? (1 mark) f. At the equilibrium price, what is total surplus in the market? (1 mark) g. If the price of ribs rose to $10, what would happen to JR's consumer surplus? (1 mark) h. If the price of ribs fell to $5, what would happen to Judy's producer surplus? (1 mark) i. Explain why the graph shown verifies the fact that the market equilibrium (quantity) maximizes the sum of producer and consumer surplus. Specifically detail what happens at price above and below equilibrium price. (3 marks) Price $14- 13- S 12 11 10- 9 8 7 D PNWAUO 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 Quantity