3.Since 2011 shipping companies using shipping containers have bought large quantities of containers to replace their old containers.In addition, the massive tsunami that struck Japan in 2011 destroyed thousands of containers and the price of steel that is used to produce the containers has increased.As a result, the equilibrium quantity of containers produced and purchased has risen, and the market price of containers has increased.

Using supply and demand analysis to explain the new equilibrium price and quantity.

1. 5. Tanya's Tattoos is local monopoly. The following table is the market demand for tattoos and the total cost.

Price $ Quantity Total Cost

60 0 30

50 1 50

40 2 70

30 3 90

20 4 110

1. a. If Tanya's Tattoos is a single price monopoly, what is Tanya's profit maximizing quantity? What price does Tanya's charge?What are its economic profit?

1. b. If Tanya's tattoos can practice first degree price discrimination, what quantity does Tanya's produce?What are its economic profits?