Consider the market for Cheese in Canada. Demand and supply are given by: QD = 13 – 2P, and QS = 3P - 2. a) Without any

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Consider the market for Cheese in Canada.
Demand and supply are given by: QD = 13 – 2P,and QS = 3P - 2.
a) Without any government intervention, what is the equilibriumprice and quantity?
b) Show the demand, supply, and equilibrium on a graph.
c) Calculate the consumer surplus, producer surplus and totalsurplus in this market. Show the corresponding areas on yourgraph.
d) If the government imposes a minimum price of $2 per unit forcheese, what will be the new market quantity? Does this policycreate any shortage or surplus? If yes, how much is it?
e) Disregard d. If the government imposes a minimum price of$3.5 per unit for cheese, what will be the new market quantity?Does this policy create any shortage or surplus? If yes, how muchis it?
f) Which of the policies in d or e are binding (effective)?Calculate the consumer surplus, producer surplus and total surplusin this market for the binding (effective) government policy. Showthe corresponding areas on your graph.
g) Explain the consequences of this policy. Who benefits and whois hurt?
h) Compute the DWL, if there is any.