3.1. Supply and demand. Consider a competitive market for used copies of Greg Mankiw's textbook Principles of Economics. The daily demand for books is given the equation WTP = 150 - Q, while daily supply of books is given by the equation WTA = 10 + Q.

Q a. Use buyers' WTP to draw the demand curve in a figure. What is the highest price anyone will pay for a textbook? How many textbooks would be demanded if the price were 50? b. Use sellers' WTA to draw the supply curve in the same figure. What is the lowest price anyone will accept for a textbook? c. Find the price and quantity of textbooks in competitive equilibrium. Label both in your figure