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BUAD 351 - Economic Analysis for Business Decisions Homework 1 due: Thu 01/29/2009 PART (i): multiple choice please provide the answers in the following box: Question 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Answer a b a c c d a a c b b d a b b PART (ii): Supply and Demand The demand function for apples is given by Q d apple = 10 2 P apple + 5 I + 1 2 P orange : Let I = 10 and P orange = 16 : The supply curve for co±ee is given by Q s apple = 4 P apple 8 : (a) write down the demand curve: Q d apple = 10 2 P apple + 5 ± 10 + 1 2 ± 16 = 68 2 P apple (b) write down the inverse demand curve: P apple = 34 1 2 Q d apple (c) complete the following table: Q d apple 68 50 26 14 8 P apple 0 9 21 27 30 P Q 34 68 2 1

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P apple = 2 + 1 4 Q s apple (f) solve for the equilibrium price and quantity. Q
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