Suppose that the supply and demand for toilet papers are described by thefollowing equations,

QD = 20 -2P

QS = 2+P

1. The market equilibrium price is closest to:

a.

2

b.

4

c.

6

d.

8

e.

10

Suppose the supply and demand for apartments in Melbourne can beapproximated by the following equations (unit: thousands),

QD =2000-4P

QS= 200+2P

Find the elasticity of demand at the market equilibrium price; it is closest to:

a.

-4

b.

-3.5

c.

-3

d.

-2.5

e.

-2

f.

-1.5

g.

-1

h.

-0.5