Suppose the supply and demand curves for a particular product are given by: Q5 = -20 + 2P Q0 =100 - 2P where Q5 and Q9 are quantities in units and P is the price per unit. (a) Graph the supply and demand curves. Be sure to calculate the P and Q intercepts for demand and the P intercept for supply. Calculate and illustrate the equilibrium price and quantity. [Hintz Show your work. [5] (b) Calculate both the demand and supply elasticity around the equilibrium point. [Hint: you can use either the point method or the average arc (midpoint) method] [5] (0) Suppose the government implements a price ceiling of $20/unit in this market. Is this price ceiling binding on the market? What are the quantities demanded and supplied at the price ceiling? How many units are exchanged at this price? Given the effects of the policy, is there a potential for illegal trade? Briey explain your answers where necessary. [5] (d) What is value of the economic surplus that would be generated in the original equilibrium? Is there a deadweight loss due to the price ceiling policy, and if so, what is its value? Briey explain. [5]