1.A free market has a demand curve Qd= 175- 3p and the supply curve Qs=-85+4p

A.Solve for the equilibrium conditions of this market.

B.Graph the free market. (Label all points, Qd, Pd, Qs, Qe, Pe)

C.Illustrate how a $5 tax will affect this free market. (Graph and explain)

D.How does a change in consumer preferences effect this market? (Graph and explain)

2.A free market has a demand curve Qd= 984-3p and a supply curve

Qs= -798 +14p

A. Calculate the equilibrium quantity and price.

B. Graph the free market. (Label all points, Qd, Pd, Qs, Qe, Pe)

C. The government increased the minimum wage. How does a higher wage effect this free market? (Graph and explain)

D. How does an increase in the number of buyers effect this market? (Graph and explain)