1.Market demand and supply are given by the following equations:

Q^d = 5000 - 200P

Q^s = -1000 + 500P.

A. Solve for equilibrium market price and quantity traded.

B. Graph the inverse supply and demand curves implied by these equations. Label (indicate the numerical values of) both the vertical and horizontal intercepts of the inverse demand curve. Label the vertical intercept of the inverse supply curve. Indicate the slope of each line. Label the equilibrium price and quantity traded.

C. Calculate the value of consumer surplus at the market equilibrium.

D. Calculate the value of producer surplus at the market equilibrium.

2.Inverse market demand and supply are given by the following equations:

P = 60 - 0.50 Q^d

P = 20 + 0.25 Q^s

A. Solve for equilibrium market price and quantity traded.

B. Graph the inverse supply and demand curves implied by these equations. Label (indicate the numerical values of) the vertical intercepts of the inverse demand curve and the inverse supply curve. Indicate the slope of each line. Label the equilibrium price and quantity traded.

C. Calculate the value of consumer surplus at the market equilibrium.

D. Calculate the value of producer surplus at the market equilibrium.

3.Market demand and supply are given by the following equations:

P = 240 - 0.35 Q^d + .0005Income

P = 20 + 0.25 Q^s , where "Income" is median household income.

A. Solve for equilibrium price and quantity traded if income is equal to $40,000.

B. Solve for equilibrium price and quantity traded if income is equal to $60,000.

C. Graph the inverse supply and demand curves given the $40,000 value for median household income. Be sure to show the numerical value of the vertical intercept of the inverse market demand curve. Indicate the numerical values of the initial equilibrium price and quantity traded on the axis of your graph. Now add the new inverse demand curve with median household income of $60,000 to your graph. Be sure to show the numerical value of the vertical intercept of the new inverse demand curve. Also indicate numerical values of the new equilibrium price and quantity traded on the axis of the graph.