1. There are two equations given to you, each pertaining to the market for product XYZ: Q = 246 - 27Pand Q = 82 + 14P

(a) Identify which equation corresponds to the demand curve and which corresponds to the supply curve.

(b) Find the equilibrium price and the equilibrium quantity in the market.

(c) Now draw a graph for the above market, showing the two equations associated with the curves. Label the equilibrium price and quantity figures in the graph. (Remember to label the two axes).

(d) What do we mean by the price elasticity of demand? For this case, calculate the price elasticity of demand.