Suppose that you have the following supply and demand curves: Q^D=250−10P
Q^S=5P−50
​A. Find the equilibrium price and quantity. B. Find the elasticity of demand at the equilibrium price and quantity. Is demand elastic, inelastic, or unit elastic at this point? C. Suppose that a quantity restriction of 30 units is imposed. Graphically show how this effects the price paid in the market and the number of goods purchased. Make sure to include the consumer surplus, producer surplus, and deadweight loss on your graph. D. Are consumers or producers better off as a result of this quantity restriction? A complete answer will include a calculation of the change in both producer and consumer surplus. E. What is the deadweight loss created by this policy? How is this related to your answer in part d?