Task 1 Demand and supply analysis 9 Points Dairy products such as milk, cheese, butter, and cream are a staple of many diets around the world. Australia is no exception. Furthermore, due to the high degree of homogeneity of cow's milk and the large number of dairy farmers in Australia, we shall consider the market for cow's milk (referred to as dairy for the rest of the question) as being perfectly competitive. Suppose that the market for dairy in Australia can be characterised by the following demand and supply equations where prices are in dollars and quantities are in litres: Solve for the equilibrium quantity, and price. Represent the Australian dairy market using a supply and demand diagram, and label all relevant points, including the area that shows the consumer surplus and the area that shows the producer surplus. (5 Points) Calculate the size of the consumer surplus and calculate the size of the producer surplus. (2 Points) Calculate the elasticity of demand at the equilibrium point found in (a). Is demand elastic or inelastic? (2 Points)