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For the following set of demand and supply, equations do the following, Find the equilibrium price...

For the following set of demand and supply, equations do the following,

  1. Find the equilibrium price and equilibrium quantity for each set of equations.
  2. Draw each set of equations in a clearly labeled graph and show the equilibrium P and Q.
  3. Calculate the consumer surplus at the equilibrium P and Q found in b.
  4. If the price were to increase, calculate the loss in the consumer surplus. Calculate the total new consumer surplus.
  5. If the price were to decrease, calculate the gain in the consumer surplus. Calculate the total new consumer surplus.
  6. Draw c, d and e showing all the points/areas.

Show all your workings*

Equation Set One

P=50-2Q

P=20+0.5Q   

Equation Set Two

P=5000-0.5Q

P=250+0.5Q   

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