1- Create hypothetical market (make a table showing values for Quantity Supplied, Quantity Demanded and Price). Any values you like and make sense to you! Make at least 10 data points.

2- Calculate the slope and intercept and write the supply & demand equations. Comment on the two equations and on the values of the slope and intercept. What do they mean?

3- List the demand determinants and supply determinants and show how thy might shift the supply and demand functions. Show graphically the impact on the equilibrium price for more & less demand and more & less supply.

4- In the market that you have created calculate consumer surplus and producer surplus and show both in one graph. Calculate the market surplus too. What does the market surplus mean and indicate?

5- In the market that you have created assume any possible price floor and any possible price ceiling. Show in a graph the impact of the price floor and in another graph the impact of the price ceiling.

6- On each graph calculate and show the quantity shortage and quantity surplus resulted from Price ceiling and Price floor.

7- Add a column to the initial table showing the elasticity of demand with respect to price at each price level. What is happening to the elasticity (increasing, decreasing, constant?) as price gets lower? Why? According to the elasticity of demand at the equilibrium, what would be more profitable to the supplier; to raise the price or to lower it. Why?

8- Discuss the cross elasticity with a substitute and with a complement to your product. Discuss the buyer's income elasticity with respect to the demand on your product.

9- Question: If you were to choose a market to start you own business in; which market you prefer; a market with price elastic demand or price inelastic demand? Why?