Consider the following weekly supply and demand tables for product X:

PQ_dQ_s

100100

82080

64060

46040

28020

01000

a.Draw the supply and demand curves on the same diagram. Determine the equilibrium price and quantity numerically and demonstrate graphically.

b.On the same diagram, show the new equilibrium P & Q when Supply ANDDemand has each increased by 50%.

c.On the same diagram, relying the original data, demonstrate the impact of the government price controls set at P = 2.

d.Calculate the Arc Elasticity of Demand (Mid-Point Formula) when Price moves from $8 to $6. Is demand elastic or inelastic in this price range? Why? WRITE the formula, show your calculations.

e.Redraw the demand curve in a new Diagram. Geometrically demonstrate the revenue change when price moves from 8 to 4. Show loss and gain and indicate elasticity based on the gain and loss (That is, without using Elasticity formula, and solely based on the revenue change, determine elasticity of demand in that price range).

f.Using your original supply and demand data, calculate, and demonstrate in the graph, the consumer surplus and producer surplus at the equilibrium level.

h.In a New diagram, and in 2 panels one write above the other, draw the demand in one panel and total revenue in the other, and based on the interrelation of the two panels (interrelation between demand and total revenue), show the elastic and inelastic regions of the demand curve and those for price and quantity range.

i.Suppose a 30% decrease in the consumer income has resulted in a 20% decrease in demand for product x. Evaluate Income elasticity of demand. Is x a Normal good or an inferior good? Why?

j.Suppose a 20% decrease in Price of a product y, has caused the demand for product x to increase by 10%. Evaluate cross-elasticity of demand. Is demand for y and x cross inelastic or cross elastic? Are x and y complement or substitutes? Demonstrate and explain.