a-1. The market forflavored wateris characterized by the following supply and demand functions:

Supply:QS=40+6p

Demand: QD=140-4p

where QS stands for quantity supplied (number of bottles),QD stands for quantity supplied (number of bottles), andp stands for price (per bottle). The equilibrium price in the market forflavored wateris $_____________ per bottle.

a-2. The equilibrium quantity in the market forflavored wateris_________ per bottles.

b. Given a demand curve ofQ=180-8p.

b-1. Calculate the price at which demand is unit elastic. This price is $___________. (Round your answer to two decimal places.)

b-2. Find the quantity where demand is unit elastic. This quantity is$___________ units. (Round your answer to two decimal places.)

c. Linear demand functions, while simple, are easy to interpret and have many applications. Suppose demand for pens is given by the function D(p)=70.00-2.00p. Suppose pens cost $2. What is the price elasticity of demand? Give your answer to two decimals.