Consider the market for 16 oz. cups of coffee, which is characterized by the market supply and market demand schedules in the table below. a) At a price of $4.00, is the market in equilibrium? if not,calculate any shortage or surplus. If the market is not in equiibrium, solve for equilibrium and explain what pressure the pricing mechanism will put on prices (in other words, how would you expect prices to change and why) b) Using the model of supply and demand, illustrate how the market would change if the price of coffee beans (a crucial input in the creation of a delicious cup of coffee decreases, and at the same time the population of coffee drinkers increases due to immigration.How would you expect equilibrium price and quantity to change? Be sure to discuss which determinants of supply and demand would have been effected c) In a new graphillustrate the impacts of a binding price ceiling.Identify the components of social welfare and discuss how efficiency and equity are impacted by the price ceiling (as compared to the market setting without a price ceiling)