There are two questions to this problem set please answer both:

1.)

The custom T-shirt printing business has many competitors, so that the perfect competition model may be considered a good approximation. Currently the market demand curve is given by Q = 120 - 1.5 p, whereas the market supply is given by Q = -20 + 2 p. Determine the equilibrium price and quantity. p-14; Q-50 p-50; Q-80 p 40; Q-60 () P 35: Q-40Consider following events and markets: OPEC reduces output [market: oil] Unusually rainy winter in New York City [market: umbrellas in NYC] -Soccer Champions League final in Madrid [market: Madrid hotels] -Unusually low catch of sole fish [market: sole fish] Which of the four correspond to the four cases considered in Figure 4.3? D S D FIGURE 43 Price effect and output effectoil: bottom right umbrellas: bottom left Madrid hotels: top right sole fish: top left oil: top right umbrellas: top left Madrid hotels: bottom right sole fish: bottom left oil: bottom right umbrellas: top left Madrid hotels: top right sole fish: bottom left oil: bottom left umbrellas: top righ Madrid hotels: top left sole fish: bottom right