1. Planet Fitness decides to raise the price of their service from $100 to $150. The company sees that users decrease from 10M to 5M per month. Calculate the price elasticity of demand using the midpoint method.
2. The market for bottled water has a demand function, Q_d = 100 - 8P and supply function, Q_s = 20 + 2P. Determine the equilibrium price and quantity sold in this market.
3. If Qd = 50-5P and Qs = - 40+5P. Whats equilibrium Quantity (Q)?

4. Consider a market with:

demand function, Qd = 42 - 2P

supply function, Qs = 2 + 6P.

Assume the market price is 4

Is there a surplus or shortage at this price?

5. A company is currently producing 10 hot tubs at an average total cost (for all 10) of $15,000 per hot tub and it can produce 11 at an average total cost (for all 11) of $16,000 per hot tub. What is the marginal cost of producing hot tub #11?