A market contains the following demand and supply functions:

Demand: P = 79 - 0.025Q

Supply: P = 3 + 0.01Q

Calculate the surplus (number of units) if the price is set at $71.

***Remember if the answer is not a whole number to leave two numbers after the decimal point.***

***

Correct answers will receive 1 mark.  Incorrect answers will

receive -0.75 mark.  An answer left blank will receive 0 marks.  So decide

carefully before you answer.***

Consider the market for chocolate ice cream.

Suppose the price of chocolate pudding (a substitute for consumers) increases.

Choose which one of the following diagrams best illustrates how the market for chocolate ice cream will change.



To answer the question write the letter of the diagram only.

The diagrams below show the market for salmon sushi rolls.

Suppose consumers learn that salmon increases brain health, and at the same time improvements in water quality increase the salmon population.  Which diagram illustrates what will happen in the market for salmon sushi rolls?

Write the letter representing the correct diagram.



The only thing that will cause an increase in quantity demanded is a decrease in the price.

***

Correct answers will receive 1 mark.  Incorrect answers will

receive -0.75 mark.  An answer left blank will receive 0 marks.  So decide

carefully before you answer.***

***

Correct answers will receive 1 mark.  Incorrect answers will

receive -0.75 mark.  An answer left blank will receive 0 marks.  So decide

carefully before you answer.***