Economists estimate that the supply function for the widget market is given by the following expression: q = 0.2 · π − 40 a. Calculate the demand and price at the market equilibrium if the demand is as defined in Problem 2.2. b. For this equilibrium, calculate the consumers’ gross surplus, the consumers’ net surplus, the producers’ revenue, the producers’ profit and the global welfare. 2.4 Calculate the effect on the market equilibrium of Problem 2.3 of the following interventions: a. A minimum price of $900 per widget 46 2 BASIC CONCEPTS FROM ECONOMICS b. A maximum price of $600 per widget c. A sales tax of $450 per widget. In each case, calculate the market price, the quantity transacted, the consumers’ net surplus, the producers’ profit and the global welfare. Illustrate your calculations using diagrams.