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The demand in market 1 is D1 = 24 - P1 The supply in market 1...

The demand in market 1 is D1 = 24 - P1

The supply in market 1 is S1 = -2 + P1

The demand in market 2 is D2 = 16 - P2

The supply in market 2 is S2 = 2 + P2

1. If no trade occurs between the markets, what are the equilibrium values of D1, S1, P1, D2, S2, and P2? Solve algebraically.

2. If the cost of transportation between the two markets is PT = 2, what would be the equilibriu, values of D1, S1, P1, D2, S2,P2, QT, and PT? Solve algebraically.

3. Show the above situation graphically, both with and without trade. Please label everything.

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