Mathematical Questions

The questions below are more focused on your ability to conduct calculations and/or create graphs. In these instances, a simple numerical answer or graph should be sufficient.

7. If a 10% decrease in the price of one product that you buy causes an 8% increase in the quantity demanded of that product, will another 10% decrease in the price cause another 8% increase (no more and no less) in quantity demanded?

8. A firm had sales revenue of $1 million last year. It spent $600,000 on labor, $150,000 on capital and $200,000 on materials. What was the firm's accounting profit?