2. Florida Orange Juice is a product of Florida's Orange Growers' Association. The demand and supply of the product are both highly sensitive to changes in the weather. During hot summer months, the demand for orange juice and other beverages increases substantially. On the other hand, hot, dry weather hurts the supply by reducing the size of the orange crop. Demand (Qc) and supply (Qs) functions for Florida orange juice are as follows: Qp = 4,500,000 - 1,200,000P + 2,000,000Ps + 1,500Y + 100,000T (Demand) Qs = 8,000,000 + 2,400,000P - 500,000P- 80,000PK - 120,000T (Supply) Where Qp and Qs are demand and supply for Florida orange juice (# of cases), P is the average price of Florida orange juice ($ per case), Ps is the average retail price of canned soda ($ per case), Y is income (GNP in $billions), T is the average daily high temperature (degrees), PL is the average price of unskilled labor ($ per hour), and Px is the average cost of capital (in percent). a. Given P = $11, Ps = $5, Y = $12,000, T = 75 degrees, PL = $6, and Pk = 12.5%. (HINT: Use 12.5 as the cost of capital, not 0.125), what are the Florida demand (Qp = f(P)] and supply [Qs = f(P)] curves? b. Calculate the market equilibrium price (Pe) quantity (QC). Round quantity to whole number and price to two digits behind the decimal point. C. Calculate the surplus or shortage of orange juice when P = $5, $10, and $15. Round shortages and surplus to whole numbers. d. Calculate the inverse demand [PD = f(Q)] and the inverse supply (Ps = f(Q)) curves. (Hint: Take intercept two places behind the decimal point & the slope coefficient out to 8 places behind the decimal point., e.g., 0.00000078) e. Using the equilibrium price pe and Qº, compute the value of consumer surplus (CS) and sketch a graph of your consumer surplus. In the CS graph, label the origin, axis, prices, quantities, the demand curve, the value of consumer surplus, and shaped the CS area. Round CS to two digits behind the decimal point. f. Using the equilibrium price pe and Qº, compute the value of producer surplus (PS) and sketch a graph of your producer surplus. In the PS graph, label the origin, axis, prices, quantities, the supply curve, the value of producer surplus, and shaped the PS area. Round PS to two digits behind the decimal point. g. If the floor price (p' = $15), calculate the Total Cost to the Government (TCG). Round TCG to two digits behind the decimal point. h. If the ceiling price (P = $5), calculate the Full Economic Price (PF). Round PF to two digits behind the decimal point. i. What type of problem is this?