help me solve these

brownlad

Help me
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

764dak

1. For the 1st one the cost function is 30+4Q. The total price of the goods would be Q times the inverse demand function ie. Q(20-2Q). At the zero profit the cost function would be equal to total price.
30+4Q=Q(20-2Q)
When you solve for Q you should get Q=3 and Q=5.

2. It depends on which curve is more inelastic. A more inelastic supply function gives a bigger burden on suppliers and a more inelastic demand function gives a bigger burden on consumers. So just calculate the price elasticity of demand and supply.

3. 150-5P + 0.5Y=5P
You solve for P to get 15+ Y/20 and then use Q=5P to get 75 + Y/4

4. I think it is D.

5. You should just equate the two functions and solve for P and then find Q.