1. Markets have two sides. One side of a market is the demand side. Describe why the law of demand holds. 2. Markets have two sides. One side of a market is the supply side. (a) Explain why the supply curve is usually upward-sloping. (b) Explain why the law of supply does not always hold. 3. Predict what would happen to the equilibrium price of marijuana if it were legalized. 4. This question deals with demand and supply and refers you to the table below. a. Given the table, graph the demand and supply curves for flashlights. Make certain to label equilibrium price and equilibrium quantity. Price Quantity Demanded/Month Quantity Supplied/Month $5 6,000 10,000 $4 8,000 8,000 $3 10,000 6,000 $2 12,000 4,000 $1 14,000 2,000 5. Which good in each of the following pairs of goods has the higher price elasticity of demand: (a) airline travel in the short run or airline travel in the long run; (b) television sets or Sony television sets; (c) cars or Toyotas; (d) telephones or C&W telephones? 6. A university raises its annual tuition from $2,000 to $2,500, and its student enrolment falls from 4,877 to 4,705. Compute the price elasticity of demand. Is demand elastic or inelastic?