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Problem II: (T1)The demand function for widgets is given by P = 270 - 3Q and...

Problem II: (T1)The demand function for widgets is given by P = 270 - 3Q and the supply is P = 20 + 2Q.

a) Find the equilibrium price and quantity of widgets.

b) Is demand elastic or inelastic at the equilibrium point? (Calculate the elasticity of de­mand at the equilibrium and classify it as elastic or inelastic.)

c.) Draw a graph showing the market equilibrium point and highlight the consumer surplus. Clearly label your axes and intercepts. Calculate the consumer surplus at the equilibrium.

Please explain in full detail as I don't understand much about this subject.

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