Good day,

QUESTION 1 The weekly demand and supply schedules for T-shirts [in millions) in a free market are as follows: Price Quantity Quantity Suppiied Demanded 8 5 18 7 8 16 6 10 '14 5 12 12 4 14 10 3 15 8 2 1B 6 1 20 4 What is the demand Curve? What does the law of demand say? (4 marks) What is the supply curve? What does the law of supply say? (4 marks) What are the equilibrium price and quantity? {4 marks) P9494!" Assume that changes in fashion cause the demand for T-shirts to rise by 4 million at each price. What will be the new equilibrium price and Quantity? Has equilibrium quantity risen as much as the rise in demand? Explain why or why not. (4 marks) 5. Now plot the data in the table and mark the equilibrium. Also plot the new data corresponding to (b). (4 marks) TOTAL MARKS - 20