.1.A firm's demand curve is estimated to be Q = 400 - 3P, where Q is quantity and P is the price of the good. At P = $21,what is the point elasticity of demand

2.A firm's demand equation is given by: Q = 60 - 60P + 2Y, where Q is quantity, P is price, and Y is income. If price increases by $2 and income increases by $67, then quantity demanded will change by how many units.

3.A product's point price elasticity has been estimated at -1.5. At the initial price of $28.2, the quantity demanded was 10 units. If the firm cuts the price to $17.5, quantity demanded and sold is expected to increase by what percentage

4.Discuss demand pull inflation

5. You need $75,000 in today's dollars for a purchase in 3 years. You expect that your savings will earn 7% compounded annually, and inflation will be 4%. You will make 3 equal annual deposits starting at the end of the year. What is the amount of your first payment? How much will you have at the end of the 3 years?

6.Does inflation make money eventually worthless

7. A house cost $84,500 in January 1997. Assuming a rate of inflation of 7% annually for house prices, what would a comparable house cost in January 2003

8. Mrs PQ is saving for her daughter's education in five (5) years' time. Her estimation is that tuition and living costs will be $300 000. She decides to deposit $3 000 per month (at the beginning of each month) into an interest-bearing account, where she can earn 12% per annum compounded monthly.

Will Mrs PQ be able to meet her target at the end of the five-year period? Also determine whether there will be a surplus or shortfall after five years. (4)

Determine the exact amount that Mrs PQ needs to deposit at the beginning of each month to achieve her goal. (3)

9. When a wholesaler sold a product at $40 per unit, sales were 240 units per week. After a price increase of $5, however, the average number of units sold dropped to 220 per week.

Assuming that the demand function is linear, what price per unit will yield a maximum total revenue?

10. A commodity has a demand function modeled by p = 30 0.5x, and a total cost function modeled by C = 9x + 37.

What price yields a maximum profit?

When the profit is maximized, what is the average cost per unit?