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1. In the market for Apples, Supply is Qs = 200P - 100 and Demand is Qd = 800 - 100P, where the quantity is in apples per week and the price is in dollars per apple.

a). Make a table showing the quantity supplied and the quantity demanded at each of the following prices:
 $1, $2, $3, $4, $5

b) Find the equilibrium price and quantity.

c) Graph the Demand and Supply.

d) Find the equilibrium price and quantity algebraically.



2. In the market for Apples, the government puts a $1 tax on apple farmers.
(This problem starts with Qs = 200P - 100 and Qd = 800 - 100P from problem 1)


a) find the new supply and demand formulas.

b) Find the equilibrium price and quantity. How much do demanders pay? How much do suppliers receive?



3. In the market for Apples, the govermnet places a $1 tax on apple buyers instead of on apple farmers.
(This problem starts with Qs = 200P - 100 and Qd = 800 - 100P from problem 1)

a) find the new supply and demand formulas.

b) Find the equilibrium price and quantity. How much do demanders pay? How much do suppliers receive?

c) Does it matter whether the $1 tax is placed on sellers or buyers?



4. In the market for Apples, the government advertises the health benefits of apples instead of taxing apples. This causes demand to increase by 300 apples per week at every price level.
(This problem starts with Qs = 200P - 100 and Qd = 800 - 100P from problem 1)

a) find the new supply and demand formulas.

b). Make a table showing the quantity supplied and the quantity demanded at each of the following prices:
 $1, $2, $3, $4, $5

c) Find the equilibrium price and quantity.

d) Graph the Demand and Supply.

e) Find the equilibrium price and quantity algebraically.



5. In the market for a gas station selling candy bars, Supply is Qs= -20+50p and Demand is Qd = 100-30p, where the quantity is in candy bars per week and the price is in dollars per candy bar.

a). Make a table showing the quantity supplied and the quantity demanded at each of the following prices:
 $1, $2.50, $0.80, $1.75, $1.20

b) For each of the above prices, determine if the market has a surplus or shortage, the amount of the surplus or shortage, and whether the price would be a price floor or a price ceiling.


6. What happens to the demand for good X when
a) more people discover good x
b) the price of complement Y increases
c) the price os substitute T increases
d) the price of good X decreases
e) a decrease in the price of X is expected
f) X is an inferior good, and income increases


7. What happens to equiliubrium price and equilibrium quantity of good X when
a) Supply increases?
b) Supply decreases?
c) Demand increases?
d) Demand decreases?
e) Supply increases and Demand increases?
f) Supply decreases and Demand increases?
g) Supply increases and Demand decreases?
h) Supply decreases and Demand decreases?


8. What happens to equiliubrium price and equilibrium quantity of Starbucks Coffee when
a) McDonalds lowers the price of their coffee?
b) The coffee beans Starbcuks uses get more expensive?
c) New technology makes it cheaper for Starbucks to make coffee AND people decide they prefer tea to coffee?