Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

This assignment exercises your knowledge of fundamental algebra. Rusty algebra gives more problems than economics. You are hereby warned that some problems have nice, clean

image text in transcribed
This assignment exercises your knowledge of fundamental algebra. Rusty algebra gives more problems than economics. You are hereby warned that some problems have nice, clean answers and some do not (even if calculations are carried to several decimal places). Please carry out calculations to two decimals before rounding off, as a general rule. Also, please show your work where possible. 1. Here is a linear demand function: Q =100 -20P. Find its price function by inverting the demand function. Then find its total revenue function by multiplying through by Q. EXAMPLE: The linear demand function Q = 400-250P inverts into the price function P = 1.6 -0.004Q Multiplying this by Q gives its total revenue function TR = 1.6Q -0.004Q. This skill will be useful in assignment 4. Show the algebra involved. a. Derive the price function from the demand function Q = 100 - 20P: P = b. Derive the total revenue function (TR) from your price function in (a.): TR = 2. Evaluate the following TR function: TR = 5Q - 0.05Q2. EXAMPLE: When Q = 50, TR = $125. a. When Q = 25, TR = $ b. When Q = 100, TR = $ 3. Evaluate the following expression. Y = 5(2X + 3)- -2X' EXAMPLE: When X =2, Y =237. a. When X = -2, Y = b. When X = 0, Y = c. When X = 3, Y = d. When X = 4, Y =_ 4. Evaluate the following exponentials. You may need to use a calculator with a Y* key. EXAMPLE: X-14. IfX =16, this gives _0.5_. Compute to two decimal places or more. a. X-15, When X = 1, this gives b. X1/2, When X =4, this gives C . X0 When X =1, this gives d. X19, When X =2, this gives

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Cases An Interactive Learning Approach

Authors: Steven M Glover, Douglas F Prawitt

4th Edition

0132423502, 978-0132423502

More Books

Students also viewed these Economics questions