QUESTION 1:

Given: (x is number of items) 3675 Demand function: d(:r:) = m Supply function: s($) = 3 Find the equilibrium quantity: items Find the consumers surplus at the equilibrium quantity: $ Given: (x is number of items) Demand function: d(a:) = 200 0.3m Supply function: 5(x) = 0.5:}; Find the equilibrium quantity: Find the producers surplus at the equilibrium quantity: Given: (x is number of items) Demand function: d(.7:) = 583.2 0.61:2 Supply function: s($) = 0.2m2 Find the equilibrium quantity: Find the producers surplus at the equilibrium quantity: Suppose the demand function for a product is given by the function: D(q) = 0.018q l 36 Find the Consumer's Surplus corresponding to q = 850 units. (Do no rounding of results until the very end of your calculations. At that point, round to the nearest tenth, if necessary. It may help you to sketch the demand curve, which crosses the horizontal at q = 2,000.) Answer: dollars Find the accumulated present value of an investment over a 7 year period if there is a continuous money ow of $5,000 per year and the interest rate is 0.7% compounded continuously. 55%] A company is considering expanding their production capabilities with a new machine that costs $102,000 and has a projected lifespan of 10 years. They estimate the increased production will provide a constant $11,000 per year of additional income. Money can earn 1.9% per year, compounded continuously. Should the company buy the machine? $ over the life J Select an answer Yes, the present value of the machine is greater than the cost by No, the present value of the machine is less than the cost by Find the present value ofa continuous income stream F(t) = 10 l 773, where t is in years and F is in thousands of dollars per year, for 10 years, if money can earn 2.1% annual interest, compounded continuously. Present value = thousand dollars