At Capilano University, senior students from the Economics major offer private tutoring sessions in ECON 112 for Prof. Dan's class. The variables that determine the demand and supply schedules for tutoring sessions for ECON112 are:

• Pc=price per tutoring session in ECON112.
• Pm= price per tutoring session in Mathematics, which is 20.
• P = price per tutoring session in Literature, which is17.5.
• I = income of ECON112 students, which is 312.
• Po=average opportunity cost of senior Economics students for giving private tutoring sessions in ECON112, which is23.5.

The equations that represent the demand and supply schedules respectively are:

Qd = 0.3PcPm+2P+0.5I

Qs = 1.91PcPo+30

Note: in all your calculations in this question, use a precision for your decimalsof up to four decimal digits. When writing your answers, again, use up to four decimal digits if needed.

Answer the following questions: (Please show the solutions)

1) The equilibrium price is:

2) The equilibrium quantity is:

3) The point price elasticity of demand at the market equilibrium,in absolute value,is:

4) The point price elasticity of supply at the market equilibrium, is:

5) Determine the cross-price elasticity of tutoring sessions for ECON112 with respect to the price of tutoring sessions for mathematics:

6) What type of goods they are? (complements or substitutes?)

7) Determine the cross-price elasticity of tutoring sessions for ECON112 with respect to the price of tutoring sessions for literature:

8) What type of goods they are? (complements or substitutes?)

9) Senior students from the Economics major found out last week that Prof. Dan will have an extremely difficult exam on his 400-level class during this week. Therefore, their average cost of opportunity of imparting ECON112 tutoring sessions will double.

• Therefore, the new equilibrium price is:
• and the new equilibrium quantity is: