Q4 solution needed. other pic is just for helping material 2. Find the supply function for good 1 of each firm and the market supply function forgood 1, and illustrate each firm supply and the market supply curves in a graphic.3. Find the competitive equilibrium price for good 1, as well as the equilibrium de-mand of each household, the equilibrium supply for each firm, the households' utilityin equilibrium, the firms' equilibrium profits, the consumer surplus, the producersurplus, and the total surplus.4. Suppose that a price ceiling of 1 is put in place. Under the assumption of efficientrationing, find the supply of each firm, the consumption for each household, the newconsumer surplus, the new producer surplus, the new total surplus, and the surplusloss in relation to the competitive outcome. 1. Assume that income for household 1 is mi, and let the price of good x be p. Then household l'sproblem ismax 2 In (x1 +) + m, subject to px, + m, s ĩ,Since household 1 will always consume as much as possible to get the most utility, we will havepx, + m, = mg. You can then solve for m, and substitute into the utility function. Then take a first-order condition with respect to x1. Solve for x, to get household 1's demand for good 1.You can solve a similar problem for household 2 and then add the two together to get market demand,2. Each firm needs to produce where MC = price. If you then solve each of these equations for y, andy2. you will have the supply functions for each of the firms. You just add these two together to getmarket supply.Helping material3. These should be pretty straightforward calculations. (Let me know if they don't seem that way!)4. This is going to be a binding price ceiling, so there will be a shortage. Find the quantity supplied byeach firm by substituting a price of 1 into the supply function, and find the quantity demanded by eachhousehold by substituting a price of 1 into the household demand functions. Consumer surplus,producer surplus, and total surplus will be found similarly to #3, except with a different price anddifferent bounds on your integrals.

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A price ceiling is a central authority-imposed maximum limit on the charge that can be charged for a…