1. If supply decreases and demand also decreases, we can conclude that the new equilibrium: a. Quantity must increase but market price may fall, stay the same or even increase. b. Price must fall but market quantity may fall, stay the same or even increase. c. Price must increase but market quantity may fall, stay the same or even increase. d. Quantity must decrease but market price may fall, stay the same or even increase. e. Both market quantity and market price must increase. f. Market quantity must increase and market price must decrease.

2. On the diagram for question two, circle the letter that correctly completes the following statement: Let D1 and S1 represent the original supply and demand curves. If there has been only an increase in demand, then the new equilibrium point will be?

The multivariate demand function below will be needed for questions 12-18. Setting: Grapple, Inc. is a leading seller of laptop personal computers. However, they want to become a leading tablet seller, too. Your marketing department, aided by your economics staff, has estimated a function to help you in the quest for market leader in tablets. The variables are defined after the function. Q.= 10000 - 25P+ 20Ph + 30P, -15P - 35PS - 10Pmm + 0.05A , + 0.03A - 25C + 0.1Y Q= = the number of Grapple tablet computers demanded per week. P: = the price of each new Grapple tablet (in $). Ph = the price of each Hewnaq tablet (in $). P. = the price of each Ronova tablet. Pat = the price to equip a tablet with Holographic digital video (in $, this is an upgrade option that enables three dimensional graphics on a tablet. Two dimensional graphics is standard equipment). Pac = the price of various screen sizes (in S. a 8 inch is standard, but upgrade options are 10 inch extra sharp, 12 inch, 12 inch extra sharp, Each also has a touch-screen option. The upgrades get progressively more expensive as the size and capability increases). Pam = the price of memory chip upgrades (in $). More 2 Gigabyte (Gb) chips can be added. Of course each added 2 Gb chip costs more. One 2 Gb chip is standard Y = average annual disposable income of a typical tablet purchaser (in $). A = average age of a tablet purchaser (in years). A = average annual Grapple advertising expenditure (in $). C = number of computer systems the average tablet purchaser already owns.a. MR =2-.4Q b. MR =3-.5Q e. MR = 1-.167Q c. MR = 1.5 -.2Q d. MR=1-.3330 f. MR =1.5 -.333QPrice S1 M DI S2 L Quantity19. Write the first derivative of the following function in the space provided on the answer sheet: R = 15 - 3T+ 4T2-6T3 Write your derivative in the space below: 20. Write the first derivative of the following function in the space provided on the answer sheet: Q =6 - P2 + p4- P; Write your derivative in the space below:In the questions 16-18 use these values in the multivariate demand function for Grapple tablets: P= = $500 Ph= $600 P. = $600 Pac = $25 Pac = $50 Pom = $30 A= = 40 A = $100,000 C =2 Y=$30,000