HUMBER - BUSINESS SCHOOL ECON 1000-OLC (FALL 2022) DR. MICHAEL HO GROUP ASSIGNMENT #1 HARDCOPY DUE 10:45 AM ON OCTOBER 13TH, 2022 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 step-by-step demonstration on how to get the answer and type up your assignment with word-processing software because hand-written assignment 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 submission will not be accepted and a zero will be assigned. Group Member Name (Print Clearly) Signature Page 1 of1. Suppose in the market for ECON 1000 private tutoring, the supply curve is P = 20 + 20 and the demand curve is P = 60 2Q, where P is the price of private tutoring per hour and Q is the number of hours of private tutoring. (a) Show how to solve for equilibrium number of hours Q" and price per hour P" of private tutoring, and total revenue to the tutors TR". Pg QB TR" (b) Suppose the government believes the tutors cannot earn a decent living at the equilibrium price P9 from part (a) and it legislates to change the price of private tutoring by $10 an hour with a binding price oor Pf. Show how to solve for the binding price oor Pf. At Pf, solve the quantity supplied Q}? and demanded (2?, the quantity of excess supply (surplus) or demand (shortage), and total revenue to tutors TRf. Pf Q? Q? (circle one) Shortage / Surplus quantity TRf (c) Suppose the tutors used to consume 40 pizzas when their income was at TR\" in part (a) and their pizza consumption increases to 50 as their income changes to TRf in part (b). Calculate the income elasticity for pizza. Is it inferior, normal, or luxury item? (d) Can the price oor policy raise the total revenue for the tutors? Why? Page 2 of2