"'\"u'\"a' " \"' " " m' ""' "'"c: '1""""'" Assume we have the following simple Quantity Dependent demand and supply system for steel: Demand: Q; = 80 2 P Supply: Q, = 4 P 100 Where Q is the quantity of the commodity demanded at price P and Qi is the quantity of the commodity supplied at price P. A: Using the above information for the demand and supply equations, numerically solve for the (1) vertical demand intercept (the choke price where the quantity demanded is equal to 0), the (2) horizontal demand intercept (the quantity demand when the price is 0), and the (3) vertical intercept value for the supply equation (supply price when the quantity supplied is 0). Using these calculated values graph the (4) demand and (5) supply curves for the above commodity. B: Solve for the market equilibrium price and quantity values and insert them along the graph axis you created in part A. C: Calculate the numerical values for the consumer surplus and the producer surplus for the gure you created in part A. D: Identify the consumer and producer surplus on the gure you graphed and carefully dene the concept of both consumer and producer surplus. Explain why in the absence of externality a competitive market maximizes the sum of consumer and producer surplus. E: Numerically calculate total producer cost at the equilibrium quantity. Carefully identify the area of total cost on the gure you created using letters to identify the area. F: Numerically calculate total consumer willingness to pay for the equilibrium level of the commodity. How does total consumer willingness to pay differ from the concept of consumer surplus