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[)85( w707 May /June 2022 QUESTIONS \ | 1 he supply nd demand sets tor a poad are ) {1 1) |8y 106 Lo | el D o { (g + 36p = 1120} ok ) 18 s price in rands pe ; respoactively where ¢ is the number of units of the pood on the market and p 18 the pric : J (a) Determine the supply and demand functions ¢~ () and ¢~ (p) D q "y ) (1) Determine the inverse supply and demand functions " (q) and p=(q (¢) Determine the equilibrium price p* and aquilibrium quantity ¢ l b X quanti () It an excise tax of 7' rands per unit % imposed find the new equilibrium price and g Suppose that an efhcient amall hirm has cost tunction (11] Cla) = g g 100g + 200 k/ \ ( BOK, DUPPOSC O a o maximum leve of eck )I()(‘ jction 1s W | juantity pre du &) W Py | | t 100 I V Wi Y | ore g I8 ‘ 0. Determine (a) fixed cost (b) the firm's profit function (¢) the firm's startup point (d) the firm's breakeven point (¢) Draw and label the supply set (L) BLC where | \'\1\ /A) ) P ”“,‘ll-"} i \‘\'I /"“' ( "(,l) :i./v '.’1/ 100 and 0,5 o % ;’()} .and C {(20; p)[p == €'(20) = 1260} (3) 3. Suppose you own a piece of land whose current value is R1370000. Assume that the land's retail value will increase by RO0000 at the end of each year, Assuming also that interest on a bank deposit will be compounded continuously at the equivalent annual rate of 4,5%, write down an expression for the present valug of the amount realized by selling the land after t years, and determine the optimum time to sell. Ihe firm ABC is a monopoly with cost function Cq) = ¢ = 100¢" ++ 140g + 200 I'he demand set for the product is 2 {(t/\/'){[' F gt = dg ll)l)}. where pis the price per unit product and ¢ is the number of units produced. Determine the level of production which maximizes the firm's profit, and the maximum profit if the upper limit on the production 15 50 units, Justify your answer. suppose that a firm's capital and labour vary in time as follows: k(t) = 81* and I(1) = 5t + 6. If the firm has production function (k1) = 2ki*, [TURN OVER| (8] [10] [11]