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Question: 5 the ministry of tourism in the republic of palau...

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5. The Ministry of Tourism in the Republic of Palau estimates that the demand for its scuba diving tours is given by Q 6,000-20P, where Q is the number of divers served each month and P is the price of a two-tank dive. The supply of scuba diving tours is given by30P-2.000 a. Solve for the equilibrium price and quantity b. Find the value of the consumer surplus received by divers visiting Palau. (Hin: I may help to draw a graph.) c. Find the value of producer surplus received by dive shops. (Hint: It may help to draw a graph.) d. Suppose that the demand for scuba diving services increases, and that the new demand is given by @-7.000- 20P. Calculate the impact of this change in demand on the values you calculated in parts (a) through (c). e. Are consumers better off or worse off as a result of the demand increase? How about producers?

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