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Question: market demand d and supply s are the following...

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Market demand (D) and supply (S) are the following

GROUP A (1) Market demand (D) and supply (S) are D: P 40-Q, S: P - 3Q. Let Qe Quantity at equilibrium and Pe - Quantity at equilibrium. (a) Compute Qe and Pe and graph the D and S functions in the same graph with P on the vertical axis. (b) Show that at Q1-7, Net Market Benefits (NB) are less than NB at Qe. (c) Show that at Q2- 13, Net Market Benefits (NB) are less than NB at Qe. (d) Compute price elasticity of demand at Qe. What is the Dead-Weight Loss (DWE) at Q1-7? What is the Dead-Weight Loss (DWE) at Q2 13? (e) Compute price elasticity of supply at Qe. (2) Using a D and S graph, discuss the impact of a minimum wage rate on the labor market. Offer at least one possible solution that restores efficiency (3) Using a D and S graph, discuss the impact of rent control on the rental apartments /housing market. Offer at least one possible solution that restores efficiency (4) Using a D and S graph, discuss the impact of a per-unit of production tax on product X and stress the role of D and S elasticities regarding the distribution of the tax burden.

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