1.Use the demand and supply equations given below to calculate the equilibrium price and quantity.

Q_S= -4+8P Q_D = 26-2P

2.New techniques in the production of LCD screens make it possible to produce them at lower marginal cost. Illustrate the effect this will have in the market for televisions using LCD screens. How will it affect the equilibrium price and quantity?

3.The price of tea increases. At the same time, robots are developed which prove to lower the cost of production of coffee. Discuss the effect these two activities will have in the market for coffee. Use demand and supply diagram to show the new equilibrium condition.

Assume the quantity demanded of a handbag falls from 300 to 200 when a price increases from $500

to $550. Calculate and comment on the price elasticity of demand.

4.

5.Assume that an apartment rents for $650 per month and at that price 10,000 units are rented. When the price increases to $700 per month, 13,000 units are supplied into the market.A. By what percentage does apartment supply increase?

B.By what percentage does the price change?

C.Calculate and comment on the price elasticity of supply.

6.Talise's income increases from $25,000 to $30,000 per year and her demand for pizza increases from 12 to 14 per year. Calculate and comment on her income elasticity.