suply and demand equation hel exam tomorrw.

freeze4real

HI, all

can someone please help me how to do the above. i have an exam tomoorw. OMFG i'm f*ked

The demand for a good is P+Q=30. The total cost function of the firm is TC = 1/2Q^2 + 6Q + 7. The profit maximising level of output for this firm is Q=7.

andrew

What's the rest of the question?

freeze4real

andrew wrote: »

What's the rest of the question?

Thats the question, and that is it True, False or Uncertain and explain your answer.

thanks

freeze4real

it doesnt matter, kinda messed it up in the exam.

but would you knw how to solve thsi.

The inflation rate fell from 3% in 2011 to 2% in 2012. prices in 2012 are lower than in 2011.

Is this statement true uncertain or false.

I saidits true as i did new - old/old x 100 which was 100% apprently it was wrong?


any opinion in this.

irish_goat

freeze4real wrote: »

it doesnt matter, kinda messed it up in the exam.

but would you knw how to solve thsi.

The inflation rate fell from 3% in 2011 to 2% in 2012. prices in 2012 are lower than in 2011.

Is this statement true uncertain or false.

I saidits true as i did new - old/old x 100 which was 100% apprently it was wrong?


any opinion in this.

Prices in 2010 = 100
Prices in 2011 = 100 + 3% = 103
Prices in 2012 = 103 + 2% = 105.06

No?

axel7

If prices were to be lower there would have to be deflation
In this example inflation just decreased year on year, different from deflation.

freeze4real

axel7 wrote: »

If prices were to be lower there would have to be deflation
In this example inflation just decreased year on year, different from deflation.

So there's was a deflation decrease in price of goods. And inflationary also fell ? Is that it ?

noodler

freeze4real wrote: »

So there's was a deflation decrease in price of goods. And inflationary also fell ? Is that it ?

Sorry, to use the same example as Irish Goat.

But if a Mars bar costs 1 euro in 2010

With inflation of 3% in 2011 - it now costs 1.03

With inflation of 2% in 2012 it now costs 1.05.

So, as you can see the Mars Bar in 2012 is still more expensive than the Mars Bar in 2011.

The rate of increase in prices may have slowed in 2012 (from 3% to 2%) but it was still a positive rate of increase (i.e. inflation rather than delfation).


There was NO deflation in this example.

axel7

freeze4real wrote: »

So there's was a deflation decrease in price of goods. And inflationary also fell ? Is that it ?

inflation fell
no deflation in this question, sorry for the confusion.
Prices are rising every year, just at a slower rate

freeze4real

thanks guys, cant reallly explain how i missed.