Supply and Demand Equation for certain product are 3q −200p + 1800 = 0 and 3q + 100p −1800 = 0 respectively, where p represents the price per unit in dollars and q represents the number of units sold per time period. a) Find the equilibrium price algebraically. b) Find the equilibrium price when a tax of 27 cents per unit is imposed on the supplier. 2. a) Find the break - even points for company X, which sells all it produces, if the variable cost per unit is $3, fixed costs are $2 and YTR= 5√q, where q is the number of thousands of units of output produced. b) Graph the total revenue curve
1. Supply and Demand Equation for certain product are
3q −200p + 1800 = 0
and
3q + 100p −1800 = 0
respectively, where p represents the price per unit in dollars and q represents the
number of units sold per time period.
a) Find the equilibrium price algebraically.
b) Find the equilibrium price when a tax of 27 cents per unit is imposed on the
supplier.
2. a) Find the break - even points for company X, which sells all it produces, if the
variable cost per unit is $3, fixed costs are $2 and YTR= 5√q, where q is the number
of thousands of units of output produced.
b) Graph the total revenue curve and the total cost curve in the same plane.
c) Use your answer in (a) to report the quantity interval in which maximum profit
occurs.
Show all steps to get full credit. Solve it Algebraically
3. At 27, Joanna Gretz sets up an IRA with Merrill Lynch where she plans to deposit
$2000 at the end of each year until age 60. Find the amount of annuity if she invests
in
(a) A corporate bond fund, which has historically yielded 6% compunded annually,
versus
(b) A stock fund which has historically yielded 10% compounded annually.
Although past performance is no guanrantee of the future, assume that future yields
equal historical yields.
4. Green Acres Sprinklers, Inc, will receive $185,000 in 3 years as part of a lawsuit
settlement. Find the present value if money can be invested at 5% compounded
quarterly.
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