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Question: market demand d and supply s ared p 602qands...

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Market demand (D) and supply (S) are:D: P = 60-2QandS: P = 5 +Q. Let Qe = Quantity at equilibrium and Pe = Priceat 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 = 9, Net Market Benefits (NB) are less than NB at Qe. What is the Dead-Weight Loss (DWE) at Q1 = 9? (c)Show that at Q2 = 20, Net Market Benefits (NB) are less than NB at Qe. What is the Dead-Weight Loss (DWE) at Q2 = 20? (d) Compute price elasticity of demand at Qe. (e) Compute price elasticity of supply at Qe.

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