Say that you know that the inverse demand curve for SU sweatshirts is: p=50 - (1/2)*Q_d (where p is the price per sweatshirt and Q_d is the quantity of sweatshirts demanded), and the (inverse) supply curve can be expressed in a similar fashion by p=(1/2)*Q_s -4.

1. What is the equilibrium price quantity pair if the market for SU sweatshirts is perfectly competitive?

1. If the equilibrium you solved for in (a) is for last year, and we assume there is increased demand due to excitement about the basketball team winning so many games this year, how would this year's equilibrium compare to last year's (circle the correct answer)?

1. Higher price, lower quantity

1. Higher price, higher quantity

1. Lower price, lower quantity

1. Lower price, higher quantity