Gen 1	Gen 2	Gen 3	Gen 4	Gen 5
Price	Quantity	Price	Quantity	Price	Quantity	Price	Quantity	Price	Quantity
-1000	100	-500	500	-1000	0	0	0	-1000	100
0	0	0	0	-100	0	50	50	0	0
100	20	50	0	0	0	75	50	300	400
120	0	100	0	20	0	100	0	330	0
200	0	150	0	60	40	200	0	370	0
250	30	200	0	200	0	250	0	460	0
500	0	230	0	220	50	300	0	700	0
550	0	300	100	300	10	600	0	900	0
700	100	500	0	330	0	700	0	950	0
1000	0	1000	100	400	0	1000	0	1600	30

Generators submit 10 price-quantity pairs for each trading interval in a trading day. The bids reported in the spreadsheet are for a one dispatch interval (5 minute) in a trading interval. Electricity generators in the NEM submit supply bids consisting of 10 prices and corresponding quantities. Note that generators need not bid a quantity at each price. The bids in the excel sheet are examples of real bids submitted by generators to supply the NEM. The dispatch price is the minimum price that clears the market. Each generator earns the market price not what they bid. Therefore, a generator's total revenue is the quantity dispatched in the market multiplied by the market price. You will analyse these data by answering the following questions (60 marks) (5 percent of final grade). a. How much is Gen 1 willing to supply if the market price is $460 for the dispatch interval? (5 marks) b. How much is Gen 4 willing to supply if the market price is $460? (5 marks) c. If the market price is $460, what is the total revenue earned by each generator? (5 marks) d. Using a excel, plot the supply functions for each generator. Include the results for Gen 1 and Gen 4 in your write-up. Comment on the difference. For example, why might a generator bid quantity at a negative price? What are some reasons that the supply profiles are different. (5 marks) e. Plot the aggregate supply function for this market. Again, make sure you plot a step function. (5 marks) f. Aggregate demand is perfectly inelastic and equal to 830. Use excel to illustrate the equilibrium in a diagram. Show the price and quantity in the diagram. (5 marks) g. Compute the revenue earned by each generator. (5 marks) h. Which generator is the pivotal generator? (5 marks) i. Suppose that Gen 4 is a wind turbine and wind supply was not sufficient to produce the electricity it bid into the market. Compute the new equilibrium if Gen 4 cannot supply the market. Use excel to illustrate the changes in the market and explain the change in price. (10 marks) j. Suppose a second wind farm bid into the market the following supply: Compute an estimate of the merit order effect. Use excel to illustrate the merit order effect in a diagram using the data provided. (10 Marks)

Price	Quantity
0	0
50	50
75	65
100	0
200	0
250	0
300	0
600	0
700	0
1000	0