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Case I: Elasticity Parti Demand and Supply are represented by the functions below: Q = 8250 - 325P Qs = 850+ 175P Exercise: 1

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Case I: Elasticity Parti Demand and Supply are represented by the functions below: Q = 8250 - 325P Qs = 850+ 175P Exercise: 1. Compute quantity and price in equilibrium 2. Determine what would happen if the price changed to 12$ 3. Plot the graph representing the first two questions. 4. Compute the elasticity of both curves assuming the price would increase from 225 to 24$ 5. Plot the graph for question 4.