1. (Demand and Supply) In a diagram illustrate the effects on the price and quantity traded in a market after the following scenarios: a) Supply increases only. b) Demand decreases only. c) Supply increases by a large factor and Demand increases by a small factor. d) Supply decreases and Demand increases by the SAME factor. e) Supply increases and Demand decreases (unknown factor changes). Question 2 (Demand and Supply) a) Calculate the equilibrium in a market given the following equations: P = 100 - Qd (Demand) P = 20 + Qs (Supply) b) If the price in the market becomes P = 80, calculate the surplus or shortage c) Make diagrams for a and b. Question 3 (Marginal Analysis) Calculate the optimal amount of output to produce in a firm under the following conditions: Marginal Benefit*: MB = 200 - 2Q Marginal Cost: MC = 20 + Q *Marginal Benefit is also called Marginal Revenue when the question involves output