1. Suppose the market for the Toyota Yaris in a certain area has the following demand and supply curves: QD= 800 - 30 P and QS= 400 + 50P where price is for a single Prius (in thousands of dollars) and quantity is in thousands of cars sold.[3+3=63 marks]

A.What is the equilibrium price and quantity of Prius' in this market?

B.Is there a surplus or shortage in this market if the price is initially $20000? How large is the surplus or shortage? Show this situation graphically. Explain how the market would move from this price to the equilibrium price.

2. Use supply and demand analysis to determine the effect on the market for each event below. Illustrate each situation graphically and indicate explicitly what happens to price and quantity in each case.[2+2+1+1=6 marks]

A.Suppose food services at Oman decides to reduce the price of coffee products sold.How would that affect the market for the Starbucks at the corner of Grand Mall?

B.Due to COVID 19 consumer, prefer to order home delivery of food. How would this impact on prices of home delivery services.

C.Many people lost jobs and they travel out of the country. How this would affect the demand and supply of home rental market.

D.How does increase in electric cars will affect demand curve of patrol?

E.Explain how market equilibrium changes when there is an increase only in the demand.