1) Graph the following demand and supply curves. Label them with subscript 0. make sure you explicitly solve for and label the intercepts.

Q^D = 35 - 5P

Q^S = 10P + 5

2) Solve explicitly for the free-market equilibrium prices and quantities. Label them P' and Q', respectively. In addition, solve for total surplus.

3) If a price floor of $1 is imposed on the market, how much total surplus is lost? Label all relevant information on your graph.