Suppose you are provided the following data about the demand for bicycles:

• when the price is $8 per bicycle, the quantity demanded is 206.
• if the price increases to $12 per bicycle, the quantity demanded drops to 194.

a. Assuming that the demand curve is a straight line, derive the demand equation for bicycle in Bothell

Note: if you were unable to find the demand in part a., or if you are unsure whether or not the demand you found is correct, you can use the following demand for part b. and c. without penalty in part b. and c.:QD= 145 - 4P

b. Suppose the supply curve is given by Qs= -20 + 2P. What are the equilibrium quantity and price of bicycle in this case?

c.What is the price that would generate a surplus (excess supply) of 15 bicycles?