1) The market for ice cream has the following demand and supply schedules: Price Per Quart Quantity Demanded | Quantity Supplied $2 100 20 $3 80 40 $4 60 60 $5 40 80 $6 20 100 Part A. Using Excel Graph The Schedules Part B. Part C. Part D. 2) Part A. Part B. Part C. 3) 4 5) 6) What is the equilibrium price and quantity? What would happen if the price was set at $3 and why? What is the slope of the Demand Curve between Price at $2 and $3? Demand and supply curves can be presented with equations. Suppose: Qd=90-2P and Qs=P What is the equilibrium price and quantity? If price was $20 what would be Quantity Demanded and Quantity Supplied? At the price of $20, what is happening in the market? Assume people always drink beer using Solo Red Cups. Assume price of beer goes down by 20% primarily because of a 15% decrease in the input costs of making beer. What will happen in the Solo Red Cup Market? If the government wants to minimize dead weight loss of taxation, which of the following would you recommend and why? Bottle Water, Prescription Drugs, Oranges, or luxury cars? Assume that a $0.25 / gallon tax on milk causes a loss of $300 million in consumer and producer surplus and creates a deadweight loss of $75 million. What was the tax revenue generated? Assume an economy produces only strawberries and cream. What is Nominal GDP, Real GDP and the GDP Deflator for each year? Year Price Strawberries Q of Strawberries Price Cream Q of Cream 2020 $3 100 $2 200 2021 $4 125 $2.50 400 2022 5 150 $3 500 7) Economist say trade creates value. Using the following information determine if value is created by trading and if so, how much? Assume Hillary found a car on Craigslist. She was preapproved with her credit union for $11,000. She was willing to pay only $10,000. Jason owned the car, but needed to sale quickly and was willing to accept $6,000. The agreed upon price was $7500