1. The demand function and supply function for a good in the market are as follow:

Qd = 140 - 10 P

Qs = 20 +10 P

Complete the following table:

Price (RM)	Quantity Demanded (units)	Quantity Supplied (units)
1
2
3
4
5
6
7
8
9
10

b) Determine the market equilibrium price and quantity.

c) Why is the price of RM4 not the equilibrium price? Is there a shortage or a surplus?

2. True and False.

A. For a market to be in equilibrium, supply must equal demand.

B. A rise in the price of potatoes will cause a fall in the demand for potatoes.

C. A rise in the demand for floppy disks will result in a higher equilibrium price for floppy disks.

D. A fall in supply is illustrated by a downward shift in the supply curve.

E. A rise in the supply of birdseed will cause an increase in the equilibrium price of birdseed.

F. Demanders will not be satisfied when the market price is below its equilibrium level.

G. When an excise tax is imposed, the economic incidence falls entirely on suppliers.

H. If the legal incidence of an automobile tax is switched from buyers to sellers, then car buyers will be better off.

I. When a sales tax of 50 per pack is imposed on cigarettes, the price buyers pay for cigarettes rises by exactly 50 per pack.