1. Suppose demand is given by the function:QD=171.5P. All else the same, pricechangesfrom an initial price, P0=5, to a new price,P1=4.5.Using the midpoint approach, what is the price elasticity of demand around the midpoint of P0and P1?(round to the nearest hundredth)

1. Suppose a market is initially in equilibrium at price P0. Then, all else the same,supply increases, bringing about a new equilibrium priceP1. At the midpoint ofP0and P1, price elasticity of demand (EPD) is 0.18. As a result of this change in supply, what happened to sellers' total revenue?

1. Suppose that in the market for lemons, demand is given by the function D:QD=202P, and supply is given by the function S:QS=(1)+3P. Use this information to answer the following questions (round to the nearest hundredth if needed).

A.) What is the equilibrium price in this market?

B.) If a price ceiling of P=3.4is imposed on this market, what will the market price be?

C.) How many lemonswill be bought and sold with the price ceilingP=3.4in place?