Circle the one best answer, fill in the blank(s), or work out completely. Show calculations, please. 1. If supply increases and demand also decreases, we can conclude that the new equilibrium: a. Quantity must increase but market price may fall, stay the same or even increase. b. Price must fall but market quantity may fall, stay the same or even increase C. Price must increase but market quantity may fall, stay the same or even increase. d. Quantity must decrease but market price may fall, stay the same or even increase. e. Both market quantity and market price must increase. f. Market quantity must increase and market price must decrease. 2. On the diagram for question two, circle the letter that correctly completes the following statement: Let D, and So represent the original supply and demand curves. If there has been only an increase in supply, then the new equilibrium point will be ? Price Quantity 3. One of the following equations represents a supply curve and the other a demand curve. You have to decide which is which. Circle the answer for question three that is the closest to being correct. The equations are: Q=150-10P Q=100 + 5.6P What quantity will be demanded if the market price is forced to be $9? 3.2 60.0 111.0 118.0 130.0 150.0 (all close, but approximate)