1. A) A researcher has observed the relationship between price and quantity demanded of sparkling water. The researcher found that there are 55 litres of sparkling water sold when the price is $3.00/litre. But, when the price is $9.00/litre, there are only 24 litres of sparkling water sold. If the price = $7.5/litre, how many of sparkling water (litres) can be sold?

B)The researcher also found that: :

• When the price = $3.00/litre, the quantity supplied = 33 litres
• When the price = $9.00/litre, the quantity supplied = 40 litres

Calculate how many quantity supplied if the price = $ 7.5/litre.

C)If the government gives a subsidy of $1/litre, what is the quantity supplied when the price = $7.5/litre ?

D)Calculate the excess supply/excess demand (litres) after the subsidy is introduced and when the price is $7.5/litre.