Math Problems
Solve all of the following questions.
This assignment carries a 30% weight of the final grade for this module.
- Submit one single document and not lots of different files.
- Consider market supply curve which passes through the intercept and from which the market equilibrium data is known, this is, the price and quantity of equilibrium PE = 50 and QE=2000. (20 points)
- a. Considering those two points, find the equation of the supply.
- b. Draw a graph of this line.
- Considering the previous supply line, determine if the following demand function corresponds to the market demand equilibrium stated above. QD = 3000 – 2p (15 points)
- The production function of a firm is described by the following equation Q = 10,000L− 3L where L stands for the units of labour. (20 points).
- Draw a graph for this equation. Use the quantity produced in the y-axis, and the units of labour in the x-axis.
- b) What is the maximum production level?
- c) How many units of labour are needed at that point?
- Solve the following system of equations (10 points).
50x +20y =1800
10x + 3y =300
- Consider the demand and supply functions for the notebooks market. (20 Points).
QD =10,000−100p
Qs=900p
- a. Make a table with the corresponding supply and demand schedule.
- b. Draw the corresponding graph.
- c. Is it possible to find the price and quantity of equilibrium with the graph method?
- d. Find the price and quantity of equilibrium by solving the system of equations.
- Supply and demand functions show different relationship between the price and quantities supplied and demanded. Explain the reason for that relation. (15 points).