7 (b)On the floor of stock exchange traders meet to buy and sell stocks ofvarious companies. Suppose the change in quantity sold of a particularstock depends on the gap between offer price PD and the asking price PS.In particular, assume that q = (PD-PS). The inverse-demand function ofthe buyer isPD = a + bqAnd the inverse supply function of the seller isps = g + hq.If the initial price at t=0 is Po, find the equilibrium quantity sold in thismarket. Find the quantity sold as a function of time. What conditionsmust hold for this equilibrium to be stable.

Answered: 7 (b) On the floor of stock exchange…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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A firm's demand function for a good is given by D: P= 100-2Q and their total cost function is given by TC = 300+8Q. Obtain an expression for total revenue in terms of Q. * TR= 100 -2Q TR= -2Q² + 92Q – 300 Option 3 TR=100Q – 2Q² Option 4 O TR=(100/Q) - 2
Considering the importance of health in developing economies, an international aidSuppose a monopolist's inverse demand curve is given by p(y) = 100-2y where p is price and y is quantity. Assume the monopolist's marginal cost does not vary with output. If an increase in raw material prices causes the monopolist's marginal cost curve to shift upwards by £5, how much of this increase in marginal cost will the monopolist pass on to consumers in a higher monopoly price? organization produces household medical kits at low prices. The variance of the price of these kits, across many villages the organization serves, should not exceed $4. For a random sample of 20 of these villages, the sample variance of price was $5.5696. Stating any assumptions, you need to make, test at the 5% level the null hypothesis that the population variance is 4 against the alternative that it is larger than 4.
15(b). The demand function for a manufacturer's product is p = 12- 0.03q where p is the price per unit and q is the number of units. Find the manufacturer's expected maximum revenue.
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(3) The demand curve of a firm is p= 1200 – 21g and its total cost is C(q) = 2g - 66q +600q +1000 where q is the output of the firm (in thousands). 3 (i) Derive an expression R(q) for the firm's revenue function. (ii) Derive an expression II(g) for the firm' s profit function. (iii) Is the rate of change of profit inereasing or decreasing when the output level of the firm is 10,000 units? (iv) Determine the level of output at which profit is maximized.

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