1.

QD = 80-10P
QS = 20+10P

Requirements:
a. Derive a demand schedule and draw the corresponding demand curve
b. Derive a supply schedule and draw the corresponding supply curve
c. Find out the equilibrium point, price and quantity from the equation and mark on
the schedule and graph.

2. Indicate what happens in the market for burgers (also show in diagram) if-
a. The price of hot dog increases
b. A disease develops that kills a large portion of the cattle
c. A new breed of cattle is developed with much faster growth
d. A direct subsidy is given to farmers to raise cattle

3. With reference to your answer to question 1, indicate the impact of price impositions
mentioned below (also show the impact in diagram):
a. Price imposition of Tk. 1
b. Price imposition of Tk. 3
c. Price imposition of Tk. 5

4. QD = 10-4P
QS = -2+8P
The supply curve shifts from QS to QS’ due to an imposition of excise tax of Tk.o.75
QS’= -8+8P

a. Find out the new equilibrium price and quantity.

b. Find out the net price received by the seller after the payment of the excise tax.