Chapter 1: Problem 4
Make \(Q\) the subject of $$ P=2 Q+8 $$ Hence find the value of \(Q\) when \(P=52\).
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Chapter 1: Problem 4
Make \(Q\) the subject of $$ P=2 Q+8 $$ Hence find the value of \(Q\) when \(P=52\).
These are the key concepts you need to understand to accurately answer the question.
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If \(f(x)=3 x+15\) and \(g(x)=1 / 3 x-5\), evaluate (a) \(f(2)\) (b) \(f(10)\) (c) \(f(0)\) (d) \(g(21)\) (e) \(g(45)\) (f) \(g(15)\) What word describes the relationship between \(f\) and \(g\) ?
The demand and supply functions of a good are given by $$ \begin{aligned} &P=-4 Q_{\mathrm{D}}+120 \\ &P=1 / 3 Q_{\mathrm{s}}+29 \end{aligned} $$ where \(P, Q_{D}\) and \(Q_{5}\) denote the price, quantity demanded and quantity supplied respectively. (a) Calculate the equilibrium price and quantity. (b) Calculate the new equilibrium price and quantity after the imposition of a fixed tax of \(\$ 13\) per good. Who pays the tax?
(Excel) Consider the consumption function $$ C=120+0.8 Y_{\mathrm{d}} $$ where \(Y_{\mathrm{d}}\) is disposable income. Write down expressions for \(C\), in terms of national income, \(Y\), when there is (a) no tax (b) a lump sum tax of \(\$ 100\) (c) a proportional tax in which the proportion is \(0.25\) Sketch all three functions on the same diagram, over the range \(0 \leq Y \leq 800\), and briefly describe any differences or similarities between them. Sketch the 45 degree line, \(C=Y\), on the same diagram, and hence estimate equilibrium levels of national income in each case.
Check that the points $$ (-1,2),(-4,4),(5,-2),(2,0) $$ all lie on the line $$ 2 x+3 y=4 $$ and hence sketch this line on graph paper. Does the point \((3,-1)\) lie on this line?
(Excel) The supply and demand functions of a good are given by $$ \begin{aligned} &P=-Q_{\mathrm{D}}+240 \\ &P=60+2 Q_{\mathrm{s}} \end{aligned} $$ where \(P, Q_{D}\) and \(Q_{5}\) denote price, quantity demanded and quantity supplied, respectively. Sketch graphs of both functions on the same diagram, on the range \(0 \leq Q \leq 80\) and hence find the equilibrium price. The government now imposes a fixed tax, \(\$ 60\), on each good. Draw the new supply equation on the same diagram and hence find the new equilibrium price. What fraction of the \(\$ 60\) tax is paid by the consumer? Consider replacing the demand function by the more general equation $$ P=-k Q_{\mathrm{D}}+240 $$ By repeating the calculations above, find the fraction of the tax paid by the consumer for the case when \(k\) is (a) 2 (b) 3 (c) 4 State the connection between this fraction and the value of \(k\). Use this connection to predict how much tax is paid by the consumer when \(k=6\).
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