Q. l. The market for pizza has the following demand and supply schedules: PRICE in 5) QUANTITY DElhNDED QUANTITY SUPPLIED 4 1 35 26 5 104 53 6 81 E l T 68 98 E 53 l 10 9 39' 12 l a. Graph the demand and supply curves (2 points)| b. What is the equilibrium price and quantity in this market? (2 points) b. Ifthe actual price in this market were above the equilibrium price, what would drive the market toward the equilibrium? (2 points} c. Ifthe actual price in this market were below the equilibrium price, what would drive the market back toward the equilibrium? (2 points) Q2. Suppose the demand of a particular product is represented by the following linear demand function Demand for Product Y = 200 4P Calculate the quantityr demand at the market prices $10, $20, $30, $40, and $50. Construct a demand schedule in a table and plot the demand curve for this demand function. (4 points) Q3. Below are the equations for the demand and supply curves: Demand curve: Qd=42002P Supply curve: Qs=700+5P Compute the equilibrium price? (4 points) $90!] 5000 3o 5700 5500 Price ceiling set here 5500 $400 $300 $200 $100 Excess demand or shortage from price ceiling Price {dollars in monthly rent} 10111213141516 1?1319 202122 23 24 Quantity (thousands of rental units} Original Original New Price Quantity Quantity Quantity Supplied Demanded Demanded $400 12,000 13,000 23,000 $500 15,000 15,000 19,000 $500 17,000 13,000 17,000 $700 19,000 1 1,000 15,000 $300 20,000 10,000 14,000 Questions below are based on the gure above: lWVhat is the original equilibrium price and quantity? [2 points] 2)Eect of greater income or change in tastes shifts the demand curve for rental housing to the ri t? What does this imply? {2 points) 3)With change in demand what is the new equilibrium price and equilibrium quantity? {2 points) 4} Equilibrium at E1 is with or without the government intervention? {lpoint} 5) Govt. imposes a price ceiling to prevent the price from rising. Look in the graph and tell what is the price imposed by ceiling? {lpointl 6} Since the price is not permitted to rise due to ceiling, the quantity supplied remains at what price? {lpointl '7') How much is the excess demand or shortage resulting 'om ceiling? {lpointl 8} Is the price ceiling shown in the graph above 'binding' or 'non-binding'? Please explain why