University of Modern Sciences & Arts (MSA) TEST 1 Name:

Mathematics For Economists I (ECO-113) Group:

(Q1) Identify which of the following is True and which is False and rewrite
the exact statement for the false ones.

1. If total revenue is greater than total cost then we have net profit or gain.
2. If the demand function of a certain product is: then
q d =20010 p
we can say that:
AS q d increases by 1 unit, p increases by 20$.

Solution:
1.

2.

(Q2) The quantity demanded of a certain product is 10,000 units when the
selling price is $20 per unit. If the price increases to $30, only 6,000 units are
demanded.
a) Determine the linear demand function qd=f(p).
b) What is the demand if the price is $15?
c) Determine the rate of change of the demand and interpret its
meaning.
d) Find the p-intercept and interpret its meaning.

Solution:

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University of Modern Sciences & Arts (MSA) TEST 1 Name:
Mathematics For Economists I (ECO-113) Group:

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