1. a) make brief notes on

i. market equilibrium

ii. a free market as contrasted to a command economy

iii. an inferior good.

b) considering the following supply demand model of the world tea (in billion of dollars).given price range is from 0.34 to 0.38 cents.

quantity supplied is ; 550,600,700,1000, and 1500

quantity demanded ; 1200, 900,700,600,and 525

i. using graphs determine the equilibrium price

ii. if there is a shortage or surplus when the price is 0.38 cents and 0.34 cents. calculate in billion dollars and show that on the graph.