Wood is used extensively for chairs and is produced in the market. There are equations for the Supply and Inverse Demand of wood for chairs that model its Supply and Demand graph. These equations are (for supply), P = 2Q^s, and (for Inverse Demand), P = 10 - 2Q^d. Likewise, wood has become very expensive, so the government places a price ceiling of $1.

(Part I) Draw the market equilibrium with the government intervention (Q**, P**) of the price ceiling. Please label the graph for slopes, equilibrium points, price ceiling, etc.

(Part II) What is the market equilibrium with the intervention of the government (Q**, P**)?

(Part III) Based on what you have calculated so far and the given information, is there excess demand or excess supply in the equilibrium? If there is, indicate specifically the type of excess and determine the value of this excess.

(Part IV) Are consumers benefiting from this price ceiling in this given scenario? Please compare the market equilibrium without any intervention of the government with that of the intervention of the government.