I. The demand (marginal benefit) curve for pizza slices per month for a small city is as show in the graph below page. Its inverse can be described algebraically as: P = 4 - Q/2) (where P=price and Q=quantity in thousands of slices). [Side Note: we call this the inverse demand curve, because the true demand curve says that quantity is a function of price, and that is because consumers are price takers. In other words, we consumers observe prices and then decide how much of a good to consume. In this case the true demand curve is Q = 8 - 2P. (Notice how we consume less at higher prices.) However, to make this an algebraic function where the amount on the Y axis (Price) is a function of the amount on the X axis (Quantity), we invert the demand curve. Algebraically, we do that by adding 2P to both sides, subtracting Q from both sides, and then dividing through by 2. (Check that out for yourself.) We also call this a "marginal benefit" or MB curve as it describes the marginal or additional or incremental benefit a consumer obtains from consumption of one more unit (Q) consumed.] a. Add the following supply curve to the graph: P= 1 + Q/4. [Note that this equation describes and inverse supply relationship. The regular supply curve would be Q = 4P - 4. But you will deal with the inverse curves here. This is also called the "marginal cost" or MC curve because it describes the incremental cost of producing one more unit.] [ Hint: remember this trick from algebra to get you going on drawing the MC curve: ask yourself what "p" would be when "Q" is zero. That's your "y intercept", or in this case, your "P" intercept, since our Y axis is where we put price. Then ask where the line goes from there, which you can figure out by plugging in Q=1, or Q=2, etc. It's a straight line, so you only need to do the calculation for two "Qs". "Q=0" is the easiest, of course.] Please label the curves (or as in the case here, straight lines) with "MB" (your inverse demand curve) and "MC" (your inverse supply curve)