SECTION B – Homework. SEE BLACKBOARD ANNOUNCEMENT FOR DUE DATE.

1- The following data represents points on the demand curve for Jamba Juice orange juice.

a) Graph these points with the price on the vertical axis and quantity on the horizontal axis.

b) From the graph, is the demand curve linear or non-linear (i.e. is it a straight line?)

c) Derive the demand equation( demand curve) for Jamba Juice based on the data given.

d) Derive the inverse demand curve

e) Using the demand curve for Jamba Juice state how much orange juice will be demanded at P = SO and at P = $6.

2. The following data represents 5 points on the supply curve for Jamba Juice orange juice.

3. Using your demand and supply curves from questions 1 and 2 above:

a) Calculate the equilibrium price and quantity for Jamba juice?

b) Graph your demand and supply curves on one graph and show the equilibrium price and quantity.