Problem A The supply curve for hummers is given by the equation Q = 25 + 3p, whe

Problem A
The supply curve for hummers is given by the equation Q = 25 + 3p, where Q is the number of
hummers supplied and P is the dollar unit price. The demand curve for hummers is given by the
equation Q = 40 – 2p, where Q is the number of hummers demanded and P is the dollar unit price.
Graph and calculate the equilibrium price and quantity.
Calculate what the price is when the quantity demanded is zero and show the result in the graph.
Calculate what the quantity demanded is when the price is zero and show the result in the graph.
Calculate what the price is when the quantity supplied is zero and show the result in the graph.
Calculate the consumer surplus and the producer surplus and show the results in the graph.
With a regular interval of 1 between prices,
Calculate the next five prices above (higher than) the equilibrium price and the next two prices below (lower than) the equilibrium price. For example, if the equilibrium price is 300, the next higher price is 300.5 and the next lower price is 299.5. All prices must be in dollar.
(it)
For each calculated price in (Fi) above, show (a) the corresponding quantity demanded,
(b) the corresponding quantity supplied, and (c) the corresponding market shortage or market surplus in a separate table organized like Table 2.7 in Callan/Thomas’ 6th on Environmental Economics and Management: Theory, Policy, and Applications.
Each of the market shortages must be in parentheses. If a calculated quantity figure is a shortage, you must write shortage against the calculated quantity figure. If a calculated quantity figure is a surplus, you must write surplus against the calculated quantity figure.
It is totally UNACCEPTABLE to write shortage or surplus against a calculated quantity figure.
In at least 200 total words, identify and explain the market shortages and market surpluses from the table in (Fii) above. Use two decimal points for the calculated figures for quantities and prices.