DSC1520 ASSIGNMENT 5 FOR 1ST SEM 2025

DSC1520 ASSIGNMENT 5
FOR SEMESTER 1 2025




FEND TUTORIALS

,Question 1
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Ayabonga designs and manufactures cycling products. The demand and supply functions for bikes
are
pd=600−1,5qdpd=600−1,5qd
and
ps=−30+6qs,ps=−30+6qs,
respectively. Where pp is the price, and qq the quantity. The equilibrium price and quantity are



a.
p=474;q=84.p=474;q=84.

b.
P=84;q=474.P=84;q=474.

c.
p=600;q=30.p=600;q=30.

d.
p=30;q=600.p=30;q=600.
Clear my choice

Question 2
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The supply function for a certain product is given by

, p=110+0,07q,p=110+0,07q,
with pp and qq the price and quantity, respectively. Calculate arc elasticity of supply when the price
increases from R160R160 to R180R180.


a.
Since |ϵs|>1|ϵs|>1, supply is elastic over the given interval. If the price increases by 1%1%, supply
will increase by 2,9%2,9%.

b.
Since |ϵs|>1|ϵs|>1, supply is inelastic over the given interval. If the price increases by 1%1%, supply
will increase by 2,9%2,9%.

c.
Since |ϵs|>1|ϵs|>1, supply is elastic over the given interval. If the price increases by 1%1%, supply
will decrease by 2,9%2,9%.

d.
Since |ϵs|>1|ϵs|>1, supply is inelastic over the given interval. If the price decreases by 1%1%,
supply will increase by 2,9%2,9%.
Clear my choice

Question 3
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Nhlakanipho designs and manufactures ladies jeans. The demand and Supply functions for jeans are
pd=500−2qdpd=500−2qd
and
ps=−30+8qs,ps=−30+8qs,
respectively. Find the excess of jeans demanded if the price per jean is set to R250R250.


a.
9090

b.
125125

c.