In the perfectly competitive market for pretzels there are 2 sources of demand-Yufeng and Hana. Each one has an inverse demand curve of P = 20 - Q. The market supply curve is given by Q = P - 2.

1. What is the equation for the market demand curve?
2. Draw the market demand and supply curves. On this graph identify the slopes of the two curves, the equilibrium price and quantity, the values for demand when P=0 and when Q=0, and the value for the supply curve when Q=0.
3. Assume a perfectly competitive market. What is the market equilibrium price and quantity? Identify this outcome on the graph.