1. Given the following estimates of demand for a certain product estimate:

A. the demand function(5 marks)

B. the demand curve(2 marks)

C. the price and quantity that maximises revenue(4 marks)

Quantity Price

328,000 69

564,000 33

2. The estimated demand and supply curves for a company which produces vaccines is given by:

Qxd= 120 - 8Px

Qxs= 50 + 6Px

A.Calculate the equilibrium price.(2 marks)

B.Calculate the equilibrium quantity.(1 mark)

3. Over the first six months of the year Cutumdung Lawn Care Inc. had sales of 1,900 rolls of weedwacker string per week. Over the last six months of the year, due to increased shipping costs and taxes, Cutumdung had to increase the price of its name brand weedwacker from $795 to $1,250. During this last six-month period, Cutumdung observed that sales of rolls of weedwacker string fell to 675 rolls per week.

a)Compute the arc cross elasticity of demand between the Cutumdung's brand name weedwacker and a roll of its weedwacker string.(3 marks)

b)Comment on the type of relationship which exists between these two products.(1 mark)