CHECKLIST - YOU MUST MAKE SURE THAT The name and signature of every member who has contributed to this assignment must be listed on this cover page in the space provided below (no name and signature, no marks) and the submitted assignment contains only original work from your group. Your assignment will not be accepted unless it has this cover page. Answer every part of the question (clearly label each part of your answer) with a step-by-step demonstration on how to get the answer and type up your assignment with word-processing software because hand-written assignments will not be accepted. You must coordinate with your group members to ascertain one printed copy of this assignment will be submitted in person at 10:45 am on October 13th. Late submissions will not be accepted and a zero will be assigned.

Q. 1)Suppose in the market for ECON 1000 private tutoring, the supply curve is = 20 + 2 and the demand curve is = 60 2, where is the price of private tutoring per hour and is the number of hours of private tutoring.

a) Show how to solve for the equilibrium number of hours Qe and price per hour Pe of private tutoring and total revenue to the tutors TRe

Pe_______ Qe______ TRe____

b) Suppose the government believes the tutors cannot earn a decent living at the equilibrium price from part (a) and it legislates to change the price of private tutoring by $10 an hour with a binding price floor . Show how to solve for the binding price floor . At , solve the quantity supplied and demanded , the quantity of excess supply (surplus) or demand (shortage), and total revenue to tutors .

Pf____ Qfs________ Qfd____

(Circle one) Shortage / Surplus quantity ________ TRf____

c) Suppose the tutors used to consume 40 pizzas when their income was at in part (a) and their pizza consumption increases to 50 as their income changes to in part (b). Calculate the income elasticity for pizza. Is it an inferior, normal, or luxury item?

d) Can the floor price policy raise the total revenue for the tutors? Why?

these are all the questions I need to answer

and it needs a cover letter