Reference no: EM132710416

QUESTION ONE

Demand and supply functions in a two commodity markets
Are given as;
Qd₁ =20-8P_I+P₂
Qs₁ =-7+3P₁
Qd₂ =19+2P₁-4P₂
Qs₂ =-11+2P₂
Find;
i) P₁
ii) P₂
iii) Q₁
iv) Q₂

QUESTION TWO
A closed economy is described by the following functions;
C=10 +0.8Y_d
I =12
G =25
T =5
Calculate the equilibrium income

QUESTION THREE
a) Assume a firm's AR function is given by
AR =4.5Q +3Q² +1
While AC function is given by
While AC function is given as;
AC = 2.8Q+ 3Q²-4
Find the functions for;
i) TR
ii) TC
iii) MR
iv) MC
v) profit function Σ
b) Find the roots of the profit function, Σ =-Q²-15Q -50

QUESTION FOUR
a) Determine the critical values for the following function and find out whether the critical value constitute a maximum or a minimum
Y = X³ - 12X² +36X+8
b) Determine the critical values of x and y and find out whether these values are extreme values of minimum.
Y = 1/3 X³ +X² - 35X +10

QUESTION FIVE
Let A = [1, 2, 3]
B = [3, 4, 5]
C = [2, 5, 7]
use the above values to find the operations on sets below;
i) A∪(B∪C) and A∩(B∩C)
ii) A∩B and A∪B
iii) A∪(B∩C), A∩(B∪C) and (A∪B) ∩(A∪C)