Question
Please assist with the homework below A flower shops sells roses for use at funerals. The demand for roses is = 50 2. The shop
Please assist with the homework below
A flower shops sells roses for use at funerals. The demand for roses is = 50 2.
The shop owner can source roses at R4 per rose.
i) Calculate the MRS when the flower shop sells 5 roses
ii) Calculate the MRT when the flower shop sells 5 roses
iii) Given the information in the first two questions, what should the flower shop do to maximise
profit?
iv) Calculate the consumer and producer surplus at the flower shop's profit-maximising equilibrium
price and quantity. Graph this equilibrium, showing the consumer and producer surplus.
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