>Special note regarding Problem Set 1. For each Problem Set, answer all of the provided questions. If you are asked to draw a graph, you may take a picture or scan a graph, and paste it into your answers, or use any drawing tool of your preference. Regardless, you need to submit one final copy (one file not multiple files) of your answers to Blackboard as a Microsoft Word document. Also, while scanning a graph, or taking a photo of your graph please be sure that the orientation is correct. I cannot read sideways or upside down! Please note that multiple files or picture files will not be accepted. :) *For number 3 (on the topic of the market for hybrid cars) only a graph is needed. There is no need to provide detailed demand and supply schedules as you are not given enough information to provide demand and supply schedules. Also, on the graph you will point out where equilibrium is without worrying about numbers. We are considering general ideas about equilibrium in this assignment. Remember to answer all of the components of the question including how the curves shift and in which direction as well as how the equilibrium price and quantity change.

Problem Set 1

Name: ______________________________________________

Problem Set 1 is to be completed by 11:59 p.m. (ET) on Monday of Module/Week 2.

1. Based on the information provided for the market for video games, answer the following questions.

|PRICE |Q DEMANDED |Q SUPPLIED |
|$50 |5 |9 |
|$45 |7 |7 |
|$40 |9 |5 |
|$35 |11 |3 |
|$30 |13 |1 |

a. Draw and properly label the demand and supply graphs (this