DSC1520 Assignment and Exam Pack 2022

QUANTITATIVE MODELLING (DSC1520)

QUESTION AND ANSWERS 2022

100% VERIFIED SOLUTIONS AND WORKINGS




OPTION 4

Point A is the intercept for the demand function since the demand function slopes downwards.
Using the demand function when Q = 0

P = 952 + 8(0) = 952

Point B is the intercept for the supply function:
P = 400 + 4(0) = 400


Point C use the demand function when P = 0
0 = 952 -8Q Q = 119




OPTION 2
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,Point D is the equilibrium point and it is calculated as dd function = ss function
952 – 8Q = 400 + 4Q

Solve for Q

Q = 46

Solve for P using the demand function

P = 952 – 8(46) = 584




OPTION 1




= -1/5


When Q=8 P = 60

Price elasticity of demand = -1/5 x 60/8 = - 1.5




OPTION 4

At breakeven point Total revenue = total cost

P = 100 – 20Q

Total revenue equals price, P, times quantity, Q, or TR = P×Q


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,Total revenue = Q(100 – 20Q)



Total cost = Total variable cost + fixed costs = 10Q + 40



At BEP

Q(100 – 20Q) = 10Q +40

100Q -20Q^2 =10Q +40

20Q^2 -90Q +40 = 0

Solve for Q using quadratic formula and get 0.5 or 4

Q = 0.5 x 1000 = 500 or Q = 4 x 1000 = 4000




OPTION 1

= (-3)/5



Using this as the slope we can derive the equation as below

(80 – Q)/(40 – P) = -3/5

80 –Q = -24 + 3/5P

Making Q the subject and simplifying we get

Q = 104 - 3/5P = 104 -0.6P




OPTION 3

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, Marginal Cost function is a derivative of the total cost function. So to get the total cost from the marginal cost
we have to find the integral of the MC and the fixed cost will be the constant.




C = 100




OPTION 2




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