Question 1 (20 marks) The market for a particular product is characterized by the following demand and supply functions where Q represents the quantity in units of 100 and the prices are in dollars. (a) (b e () d o' (e) P, = 60 2Q? P, = Q*+9Q +30 For QQ values ranging from 1 to 10, use EXCEL to plot both functions on one graph. The quantity must be on the horizontal axis. Label the axes and give a title to the graph. [2 marks] Answer: Do the supply and demand functions behave as anticipated by demand theory? Explain. [2 marks] Answer: Find the market equilibrium price and quantity. [2 marks] Answer: Find the price elasticity of demand when the price equal to 42 and interpret it. [2 marks] Answer: Based on your answer to part (d), if price increases by 5% from 42, compute the percentage change in quantity demanded. [2 marks] Answer: How much does the quantity demanded actually change (in percentage) when price increases by 5% from 42 and compare your results with part (e). Comment on your results [2 marks]