Question: Question 2: The table below presents data on the number of hotels and prices in a market. Answer the following question in the space provided.

Question 2: The table below presents data on the number of hotels and prices in a market. Answer the following question in the space provided. (10 Marks) Price (Smillion) Quantity Demanded Quantity Supplied $10 10 $20 $30 $40 $50 $60 $70 $80 A. Draw the diagram to represent this market below. Carefully label the diagram fully. (2 marks) B. What are the equilibrium values of price and quantity? (1 mark) Answer: C. If one of the hotels has been purchased and converted to a storage unit, what are the new equilibrium values of price and quantity? (2 mark) Answer: D. Modify the diagram you made in part A. to reflect the change in part C. Please use a different colour of ink to show the change you are drawing. CAREFULLY LABEL THE CURVES TO REFLECT THE CHANGES YOU HAVE MADE. (2 marks) E. Now suppose that supply and demand are the same as in part A (the original supply and demand schedules). If demand decreases by four units, what are the new equilibrium values of price and quantity? (1 mark) Answer: OF

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