Answer both questions. Each question carries 10 marks 1. Two trading markets have the following information: For Market A:Qd=501.3P; Qs=1.8P and for Market B:Qd=1501.6P;Qs=20+1.5P. If TC=15, (a) determine equilibrium prices and quantities (b) determine the quantities produced and demanded in each region (c) determine the quantities traded 2. Two trading markets have the following information: Surplus market: Qd=60 1.2P; Qs =0.8P Deficit market: Qd=1601.5P;Qs=20+0.5P. If traded volume is 30mt (a) determine the transaction costs (b) compute the elasticities of demand and supply in each market (c) what would be the effect of increasing elasticity of supply in the surplus through technology improvement? (d) what would be the effect of increasing elasticity of demand in the deficit market