1)Consider a demand curve of the form Q_d = 20-2p where Q_d is the quantity demanded of a good and p is the price of the good. Also consider a supply curve of the form Q_s = 2p-4 where Q_s is the quantity supplied. Graph these curves. At what values of P and Q do these curves intersect?

2)Now suppose at each price individuals demand four more units of output, that is the demand curve shifts to Q_dd = 24-2p. Graph this new curves. Graph this new curve on the diagram drawn in part 1) At what values of P and Q does the new demand curve intersect the supply curve identified in part 1)

3)Suppose that the market demand for Blue band is a straight line of the form Q = 300-50p where Q is the quantity bought in thousands of boxes per week and P is the price per box in.

i.How much Blue Band is demanded at P= 0?

1.Suppose that the demand for crude oil is given by Q_d =85- 0.4P, where Q_d is the quantity demanded in millions of barrels per day and P is the price per barrel in dollars. Suppose also that the supply of crude oil is given by Q_s= 55 + 0.6P.

a)Calculate equilibrium price and quantity in this Market

b)Graph the demand curve and the supply curve

c)Calculate the demand for crude oil and the supply for crude oil if the market price is $ 15.00 per barrel. Explain your answer.

d)Calculate the demand for crude oil and the supply for crude oil if the market price is $50.00 per barrel. Explain your answer.

2.What type of relationship exists between the firm's average physical product curve and the average cost curve in the short- run?

ii.Calculate total expenditures for Blue Band at each price between and inclusive of the prices identified in parts (i) and (ii) above.

iii.Is demand elastic or inelastic at the following prices; (a) P =2(b)P=4. Explain your answers.