1) In questions 1 & 2 below, replace the letters below with the numbers above per your WVU ID number. Using an interest rate of 2%, compute the present value in total of a flow received: of $6000 three years from now and $7000 five years from now. Show your work!

2) Using 2% interest rate, compute the present value in total of the receipt of $2000 in perpetuity. Show your work!

3) Suppose market demand and supply are given by Qd = 100 - 2P and Qs = 5 + 3P. Find the equilibrium price and quantity! Show your work.

4) Refer to the S & D equations as in #3 above! If the government sets a price floor of $25 and agrees to purchase all surplus at $25 per unit, what will be the total cost to the government? Show your work!

5) The chart below depicts a hypothetical market for workers in the distribution center industry (e.g. Amazon or Walmart distribution centers, etc.). Point e_o represents the market equilibrium before COVID-19 crisis happened. Describe in this chart how the COVID-19 crisis affects the market. Explain your answers clearly! Identify the new market equilibrium.

Wage So e . ........................ Do Quantity of labor