Answer the questions below using the data in the following table, which shows a market for a product that has significant social benefits.

Price qty demanded qty supplied

16. 20. 70

12. 30. 55

8. 45. 40

4. 25. 25

2. 35 20

A what would the equilibrium price and quantity be

B suppose the price is currently at $2 what problem would exist in the economy? What would you expect to happen to price?

C Suppose the price is currently $12.what problem exists in the economy? What would you expect to happen to price?

D using the midpoint method, calculate the price elasticity of demand if price changes from 12 to 16.is this elastic or inelastic

E. A government susidy is given to customers that increases quantity demand by 25 units at each price. What is the new equilibrium price and quantity