A) At the equilibrium price of $24, find i. Consumer surplus. ii. Producer surplus. iii. Total surplus. b) Suppose that an event causes Musthaves to become a necessary item for most people. As a result, the number of buyers of Musthaves increases significantly and the equilibrium price rises to $28. i. Show graphically why this happens. ii. What is the new consumer surplus? How does it compare to the one in (a). iii. What is the new producer surplus? How does it compare to the one in (a). iv. What is the new total surplus and how does it compare to the one in (a)? c) Suppose the government, after the increase in the number of buyers, decides to impose a price ceiling at $24, the initial market equilibrium price. i. Is this price ceiling binding in the new situation? Why? Explain briefly. ii. What is the quantity buyers wish to purchase at this price? What is the quantity sellers wish to sell at this price? Does the market clear? iii. Does consumer surplus increase or decrease with this price control? By how much? iv. Does producer surplus increase or decrease with this price control? By how much? v. How is total surplus affected? vi. Is the new allocation of resources more, less, or equally efficient compared to the situation in (a)? Why? Explain briefly. vii. Is the new allocation more, less, or equally fair/equitable compared to the situation in (a)? Why? Explain briefly.