1.Demand and Supply for this market are provided below:

P = 100 - Q

P = Q/3

A.Solve for the equilibrium market price and quantity traded.

B.Compute price elasticity of demand at the market equilibrium. Also, compute the price elasticity of supply at the market equilibrium.

C.If you increased the price of your product by 10%, what percentage change in quantity demanded should you expect?Explain.

D.If an excise tax were placed on this market, would producers or consumers bear more of the tax burden? Fully explain. Hint: use what you know about relative elasticities and tax incidence.

E.Graph this market scenario in equilibrium. Be sure to include both curves, all intercepts, and the values you found in part A (you do not need to show a tax imposed on the market or elasticities).