1.) Solve for Equilibrium Ps and Qs. Show your solutions in the simplest form.

A.) Qs = 509 + 2134P

B.) Qd = 1044-222P

2.) Answer briefly.

You are a producer who has more stocks of raw materials which you bought at a low price. Then a natural calamity like a flood came which resulted in a shortage of the supply of the aid raw materials. Will you still sell your products at a higher price to maximize profit while other people will suffer? After weighing the outcome, what will you do?

3.) How does the price of the product influence your buying decision?

4.) Give at least 10 examples of basic commodities.

5.) Give at least 10 examples of prime commodities.