2. Market Regulation Using the supply and demand functions from probl

2. Market Regulation Using the supply and demand functions from problem 1, suppose a price ceiling of p 2 implemented. were a) How much is supplied to the market and how much is demanded? b) What is the excess demand? c) Calculate the consumer surplus, producer surplus, and welfare level without the price ceiling. d) Calculate the consumer surplus, producer surplus, welfare level, and dead weight loss with this price ceiling. e) What if the price ceiling were p 4? How would our results change? 1. Elasticities Consider the following supply and demand functions 12 3p D -3+2p a) Plot the supply and demand functions. b) What are the equilibrium price and quantity? c) At the equilibrium price and quantity, what is the price elasticity of d) Interpret the price elasticity of demand. How much will quantity increases by 1%? e) Suppose I were to calculate an income elasticity of = 0.5. What the good in our market? f) Suppose there were another good in our market and I calculated ac Et = -1.2. What does this imply about the relationship between both

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