Suppose that you know that an individual's demand for cereal could be written as: Qc = 10 - 2Pc+0.50Pm+0.2Y where Qc is the quantity of cereal that their household consumes in boxes per week, Pc is the price per box, Pm is the price of a muffin at the local coffee shop, and Y is annual income in 1000s of dollars. Given this information, please complete the following tasks: Conceptual questions: What else might affect an individual's demand for cereal that is not here? What are muffins to cereal in economic terms? If someone really, really, really liked cereal, would their demand curve be more steeply sloped, or flatter, and why? PLEASE ANSWER THESE QUESTIONS INDIVIDUALLY AND GIVE FEEDBACK TO OTHER PEOPLE IN YOUR GROUP. Mechanics: How much does the quantity demanded go up when the price of cereal increases by 1? What is the derivative of this person's demand with respect to the price of cereal? What if the price of cereal increases from 2 to 4 dollars; how much does quantity demanded increase in this case? YOU NEED TO ALL AGREE ON A CORRECT ANSWER TO THESE QUESTIONS. Mechanics: PLEASE USE AN EXCEL OR GOOGLE SHEET TO DO THE FOLLOWING. UPLOAD YOUR SHEET HERE WHEN YOU ARE DONE. YOU WILL BE GRADED AS A GROUP ON THIS TASK -- PLEASE INTERACT AND MAKE SURE THAT EVERYONE UNDERSTANDS. Write out the inverse demand curve (i.e., solve for Pc on the left hand side). Using Q ranging from 0 to 17, and setting the price of muffins to 2 and income to 20, graph out the demand curve for this individual. You will need to use the "scatter" type plot in excel. Using the same range of Q, increase the price of muffins to 4, leave income at 20, and graph out the demand curve for this individual. Suppose that there are 100 people that constitute the entire cereal market, and each has a demand curve exactly equivalent to this person. In a separate graph, graph out the market demand for cereal. I know this seems pretty abstract, but just take a minute to think about some of the broader issues that are going on in society today. Let's think about an issue that was debated among the many budget issues this fall in the legislature of the state of Oregon. The government requested $500 million tied to housing production with the goal of building 36,000 homes each year – nearly double the average number of homes built in Oregon in recent years. Who would be the buyers and sellers that you would want to think about in your demand (and supply) curves in the market that could be affected by this policy? How would you think of renters of homes relative to buyers? Why?