Pregunta: CASE STUDY MICROECONOMICS (10%) Based on reading the learning book and other external sources. Answer the following questions: 1. If you have the following equations: D: 685 – 100p (demand equation) OF: 25p - 65 (supply equation) a. Find the equilibrium quantity and price. b. What will happen to supply and demand if p= 6.5 and if p = 5 c. Find the prices

CASE STUDY MICROECONOMICS (10%)

Based on reading the learning book and other external sources. Answer the following questions:

1. If you have the following equations:

D: 685 – 100p (demand equation)

OF: 25p - 65 (supply equation)

a. Find the equilibrium quantity and price.

b. What will happen to supply and demand if p= 6.5 and if p = 5

c. Find the prices at which supply and demand become zero.

d. Plot the above three points

2. Explain what are the determinants of supply and demand for a product such as French fries.

3. Explain what the main market structures are and give an example of each.

4. Based on the results of point 1, calculate the price elasticity of demand and the price elasticity of supply when the price goes from $5 to $6.5. Interpret the results.