1)Now suppose you have $500 to spend.You can buy computer software, which costs $50 or go on a ski trip for $100.Draw the budget set, labeling the end points.Just a pick a point on the budget set and tell how much of each good you bought.Suppose you now have $700 to spend.Draw the new budget set and pick a point for this budget set.Are you buying more or less software and ski trips after the income change?

2)Tom has a weekly allowance of $24, all of which he spends on pizza and/or movie rentals, whose prices are $6 and $3 respectively.Draw the budget set, labeling the end points and describe the trade-off between the two goods.Pick a possible bundle of goods from the budget set.How much pizza and movie rentals did you pick for Tom?

3)Given the following information, find the quantity demanded at the following prices:

Q^D = 200 - 5*P

a.Price is $10

b.Price is $20

c.Price is $5

4)Given the following information, find the equilibrium in the market:

-Q^D = 200 - 5*P and Q^S = 30 + 5* P

-Q^D = 100 - 3*P and Q^S = -20 + 2*P

-Q^D = 75 - 2*P and Q^S = -15 + 7*P

5)Draw a supply and demand curve for each cases below.Then, graph out the changes and show what happens to the equilibrium price and quantity.

a)Auto Market:the economy start to grow and incomes rise

b)Auto Market: the price of trucks (substitutes) falls

c)Auto Market: new, improved robotics technology

d)Auto Market: UAW wins a 15% increase in wages for its workers