SECTION A

Question 2

Question 3
Question 4
Question 7

Question 8

Question 9
Question 10
Question 11

Question 12
Question 13

Question 14

Question 15
Question 16

Question 17

Question 18
Question 19

Question 20

Question 21
Question 22

Question 23

Question 24
Question 25

Question 26

Question 27
Question 28

Question 29

Question 30
Question 31

Question 32

Question 33
Question 34
Question 35
Question 36

Question 37

Question 38
Question 39

Question 40
Question 41

Question 42
Question 43

Question 44
Question 45

Question 46

Question 47
Question 48
Question 49

Question 50
SECTION B

Question 1

Question 2

Question 3

Question 4
Question 5

Question 6
SOLUTIONS

SECTION A
Question 1

In general the line y = m x + c has a slope of m.

First we need to change the given function to the general format of a line, namely y = mx + c. We need
to change the equation so that y is the subject of the equation, i.e. writing it on its own on one side of the
equation. Now we are given the line 0 = 6 + 3x – 2y.
Therefore

0 6  3x 2 y

2 y 6  3x add 2y on both sides

6  3x
y  divide both sides by 2

6 3x
y   ab a b
 
2 2 c c c
3
y 3  x
2

3
The slope of the line 0 = 6 + 3x – 2y is equal to .
2
[Option 2]
Question 2

Question 3
Question 4
Question 6

If you need to determine the demand surplus for a demand function of P = a – b Q then the consumer
surplus can be calculated by calculating an area of the triangle P0Q0a which is equal to

½ × height × base = ½ × (a – P0) × (Q0 – 0) = ½ × (a – P0) × (Q0)

with
 P0 the value given as the market price,
 Q0 the value of the demand function if P equals the given market price
( Substitute P0 into the demand function and calculate Q0 ), and
 a the y-intercept of the demand function P = a –bQ, also known as the value of P if Q = 0, or the
point where the demand function intercepts the y-axis.

P

A rea = C S
y-axis intercept P = a – bQ
a ofP = a – bQ
P E 0
0

0 Q
Q0

In general we can summarise the steps of determining the consumer surplus as follows:

Method:
1. Calculate Q0 if P0 is given.
2. Draw a rough graph of the demand function.
3. Read the value of a from the demand function – the y-intercept of the demand function.
4. Calculate the area of CS = ½ × (a – P0) × (Q0).
Question 7
Question 8

Question 9
Question 10
Question 11

Question 12
Question 13

Question 14
 36 DSC1520/105

Question 15
Question 16

37 DSC1520/105

Question 17
 38 DSC1520/105

Question 18
Question 19
39

Question 20

© 2016 Together We Pass. All rights reserved.

 40

Question 21
Question 22

41
 42
Question 23
 43
Question 25
Question 26 44
Question 27 45
 46
Question 28

Question 29
 47
Question 30
 48
Question 31

Question 32
 49

Question 33

Question 34
 50
Question 35

Question 36
 51
Question 37
 52

Question 38
Question 39

53
Question 40

54
55
Question 41

56
Question 42
57
Question 43

58

Question 44
Question 46

59

Question 47
60
Question 48

61
62
 63
Question 49
 Question 50

64

SECTION B

Question 1: Solution
Question 2: Solution

65
 66
Question 3
67
Question 4

68
69
70
Question 5
71

Question 6