Use the following formulas as a reference: Q. = a + bP (in some websites/videos, this will be Q, = a - bP as they accounted for the fact that b is negative anyways) b = AQ,/ AP Qs = c + dP b = AQ, / AP Problem 1 1. The demand for mangoes in a local market is depicted in the demand schedule below: Price (in USD) Quantity Demanded (in tons) 0 10 130 20 110 30 90 40 70 50 50 60 70 For every 1 USD increase in the price of mangoes, how much will the demand of mangoes decrease (in tons)? Hint: Compute for b. 2. As a follow-up question, if the price goes down by 5 USD from 20 USD, what will be the quantity demanded?3. What will be the demand for mangoes if mangoes became free? Hint: compute for A 4. What will be the demand for mangoes if the price is 607 5. Complete the table abave with the missing values. If you did your computations correctly, you should be able to complete it. 6. In a piece of paper, create a demand curve using the demand schedule. See the LIMS for an example. Problem 2 1. Let's say the demand function for tons of coconuts is G, = 40 - 2P, calculate the quantity demanded if the price is 15 USD. 2. If the quantity demanded for coconuts in a particular market place is 20 tons, what is the price? Problem 3 1. Consider the linear supply function for watches: (. = -5 + 5P, where Q; is the quantity supplied in pieces of watches and P is the price per watch. 2. What is the supply for watches if it is free? Hint: you do not need to compute. Think very carefully here. 3. If the price of watches increases by 1 USD, what will be the change in quantity supplied? Hint: you do not need to compute. Think very carefully here. Price (in USD) CJuantity Supplied (in pieces) 4. Compute for d. While you already know the answer, kindly test yourself if you can do it. 5. Compute for c. While you already know the answer, kindly test yourself if you can do it