1. Residents of Freshville, a small town in Central Washington, are big fans of seafood. Fresh...

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1. Residents of Freshville, a small town in Central Washington, are big fans of seafood. Fresh oyster is one of their favorites. Please answer the following questions. a) Suppose the demand for oyster can be written as y=5-x, and the supply as y = 1 + x, where x is the price and y is the quantity. Plot both the demand and supply curves on the x - y plane below. (Hint: identify the slope and the intercept first from the equations.) b) Calculate the market equilibrium for the oyster market at Freshville, where all demand meets supply and there is no surplus or shortage. Mark the equilibrium point on the graph with the letter "E". (Hint: solve the above two-equation system for x and y; you can use either method.) c) If the demand and supply are rewritten in a more general form like the following: jy=a-x (y=b+x where a and b are both constants, solve for the market equilibrium again. (Hint: solve the system as if a and b are both known numbers.) d) Due to the recent economic downturn, the supply of oyster has shifted in Freshville. We do not know the exact form of the new supply function, but we do know that at $4, the quantity supplied is 6 and at $0, no oyster will be supplied. Knowing this, please identify the new supply function. (Hint: it's a straight line that passes through these two points: (4,6) and (0,0). Remember how to identify a line going through two points: calculate the slope first and apply the point-slope form.) 1. Residents of Freshville, a small town in Central Washington, are big fans of seafood. Fresh oyster is one of their favorites. Please answer the following questions. a) Suppose the demand for oyster can be written as y=5-x, and the supply as y = 1 + x, where x is the price and y is the quantity. Plot both the demand and supply curves on the x - y plane below. (Hint: identify the slope and the intercept first from the equations.) b) Calculate the market equilibrium for the oyster market at Freshville, where all demand meets supply and there is no surplus or shortage. Mark the equilibrium point on the graph with the letter "E". (Hint: solve the above two-equation system for x and y; you can use either method.) c) If the demand and supply are rewritten in a more general form like the following: jy=a-x (y=b+x where a and b are both constants, solve for the market equilibrium again. (Hint: solve the system as if a and b are both known numbers.) d) Due to the recent economic downturn, the supply of oyster has shifted in Freshville. We do not know the exact form of the new supply function, but we do know that at $4, the quantity supplied is 6 and at $0, no oyster will be supplied. Knowing this, please identify the new supply function. (Hint: it's a straight line that passes through these two points: (4,6) and (0,0). Remember how to identify a line going through two points: calculate the slope first and apply the point-slope form.)