Help me :(

brownlad

In the Insomnia Coffee Shop the inverse demand function for chocolate muffins is P = 20 – 2Q. To produce muffins the Coffee Shop has a fixed cost of €30 and a variable cost of €4 per unit produced. The firm breaks even earning zero profit at the output level(s):
Answer
A.
Q = 10 and Q = 4
B.
Q = 3 and Q = 5
C.
Q = 0
D.
Q = 30
E.
None of these



Question 2

In a market, the demand function is given by Q = 50 – P and the supply function is given by Q = 20 + 2P.
The government now imposes a tax on suppliers of t per unit sold.
In the new market equilibrium with the tax imposed, what share of the tax is paid by the consumer?
Answer
A.
Half of the tax is paid by the consumer
B.
None of these
C.
Quarter of the tax is paid by the consumer
D.
None of the tax is paid by the consumer
E.
All the tax is paid by the consumer

Question 3

The demand function for a good is given by QD = 150 – 5P + ½ Y , where P is price and Y is income. The Supply function is given by QS = 5P. The market equilibrium price and quantity is then,
Answer
A.
P = 15 + 1/20 Y and Q = 75 + ¼ Y
.
B.
P = 15 + ½ Y and Q = 75 + 5/2 Y
.
C.
There is no equilibrium in this market
.
D.
None of these
.
E.
P = 15 – 1/20 Y and Q = 75 – ¼ Y
.

Question 4

The demand and supply functions for a good are given as Q = 200 – 2P and Q = –20 + 2P, respectively.
The government now imposes a tax on suppliers of 10 per unit sold.
Which of the following statements is TRUE in the new market equilibrium?
Answer
A.
The price that consumers pay will be the same as the price that suppliers receive
B.
Consumers will pay a price of 60
C.
Suppliers will receive a price of 60
D.
None of these statements are true
E.
The tax will be paid entirely by the Suppliers

Question 5

The equilibrium Price and Quantity levels in a market with a supply function Q = 10 + ½ P and an inverse demand function P = 200 – 2Q are:
Answer
A.
P = 200 and Q = 10
B.
P = 90 and Q = 55
C.
P = 76 and Q = 48
D.
There is no equilibrium in this market
E.
None of these

cookie1977

Normally people do their own homework.

brownlad

cookie1977 wrote: »

Normally people do their own homework.

I wish mate...cannot get my head round this

EdenHazard

can someone tell us what principals to apply to these questions. seriously i havent a clue dude either. the none of these answers throw me so much. im too weak at maths to be able to verify if ive gone wrong. even if im right and can find no answer i stirll assume i've made a mistake

andrew

Exactly what don't you(se) understand here? What would be your best guesses at these questions? Nobody's going to give you the answer, but people will try to explain it as best they can if it looks like you're trying to understand as opposed to just looking for answers

[Jackass]

Ah the UCD Quants online homeworks. It gets a lot worse than this lads, so understanding this now will stand to you in the long run, so I'd say genuinely try and figure it out rather than just get answers and if you can't, use the Economics drop in centre and maths support centre.

Just remember that in equilibrium, the Quantity supplied and Quantity demanded are equal (so if it say QD = X + Y + Z and QS = Z+ Y - X, then in equilibrium X + Y + Z = Z + Y - X)

Also, when a tax is imposed, this is deducted from price received by the supplier, i.e P becomes P - t.

These are pretty basic though and if you were really interested in solving them yourself, there is absolutely loads of resources online and on Blackboard, as well as the support centres mentioned.

There's no harm in asking questions here, I have done it too, but you really really should make every effort to understand it, and from experience that can only happen by figuring it out rather than being told the solution.