The QTM formula is MxV=PxT. Use the following economic conditions to answer A&B.

Condition 1:L M=10,000, V=4,P=2,T=20,000

Condition 2: M increases by 50% , V drops by 25%, and T increases by 12.5%

Condition 3: from condition 2, velocity returns to 4, T increases another 2,500, while M remains constant at condition 2 levels.

A. What happens to Price if the economy moves from Condition 1 to condition 2?

show calculations and put your final answer here:

B. What happens to Price if the economy moves from condition 2 to condition 3?

show your calculations and put your final answer here: