1. Find the average value of the function over the given interval.
(a) h(x) = 2x + 2 over [1, 3]
(b) f(x) = e2x over [0, 10]
2. (a) Estimate the equilibrium price and equilibrium quantity.
(b) Estimate the consumer surplus. Draw it on a graph similar to Figure 6.2.163.
(c) Estimate the producer surplus. Draw it on a graph similar to Figure 6.2.163.
(d) Estimate the total gains from trade.
3. Suppose a price of $12 is artificially imposed.
(a) At this price, what quantity will consumers buy?
(b) Estimate the consumer surplus, the producer surplus, and the total gains from trade at this price. Compare your answers to your answers in Problem 1, and discuss the effect of price controls on the consumer surplus, producer surplus, and total gains from trade in this case.
4. Find the present value and future value of an income stream of $1000 a year, for a period of 5 years, if the interest rate is 8%.
5. A person’s annual salary starts out at $30,000. Find a formula for the person’s salary t years later, and find the salary after 5 years and after 30 years, in each case below:
(a) Each year, the person receives a $2,000 raise.
(b) Each year, the person receives a 5% raise.
6. A graph of the relative growth rate of a population is given in Figure 6.4.170. By approximately what percentage does the population change over the 10 year period?
Filed under: Costing | Tagged: (b) Estimate the consumer surplus the producer surplus, (b) Estimate the consumer surplus. Draw it on a graph s, (b) f(x) = e2x over [0, (d) Estimate the total gains from trade., 1. Find the average value of the function over the give, 10], 2. (a) Estimate the equilibrium price and equilibrium q, 3. Suppose a price of $12 is artificially imposed., 3], a) At this price, a) h(x) = 2x + 2 over [1, and discuss the effect of price controls on the consume, c) Estimate the producer surplus. Draw it on a graph si, producer surplus and total gains from trade in this cas, what quantity will consumers buy?
