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suply and demand equation hel exam tomorrw.

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  • 23-05-2012 6:16pm
    #1
    freeze4real
    Registered Users Posts: 2,540 ✭✭✭


    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.


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    #2
    andrew
    Moderators, Science, Health & Environment Moderators, Society & Culture Moderators Posts: 3,368 Mod ✭✭✭✭andrew


    What's the rest of the question?


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    #3
    freeze4real
    Registered Users Posts: 2,540 ✭✭✭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


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    #4
    freeze4real
    Registered Users Posts: 2,540 ✭✭✭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.


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    #5
    irish_goat
    Moderators, Recreation & Hobbies Moderators Posts: 5,764 Mod ✭✭✭✭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?


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    #6
    axel7
    Registered Users Posts: 44 ✭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.


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    #7
    freeze4real
    Registered Users Posts: 2,540 ✭✭✭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 ?


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    #8
    noodler
    Registered Users Posts: 26,219 ✭✭✭✭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.


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    #9
    axel7
    Registered Users Posts: 44 ✭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


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    #10
    freeze4real
    Registered Users Posts: 2,540 ✭✭✭freeze4real


    thanks guys, cant reallly explain how i missed.


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