assignment1.pdf - UNIVERSITY OF THE FREE STATE:...

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UNIVERSITY OF THE FREE STATE: BLOEMFONTEIN CAMPUS
EECM3714
INTRODUCTORY MATHEMATICAL ECONOMICS
DEPARTMENT OF ECONOMICS
ASSIGNMENT 1 (INDIVIDUAL)
MARKS : 50; TIME : 110 MINUTES
This is an individual assignment, consisting of 8 questions on 2 pages. This assignment counts 20% of your
module mark.
INSTRUCTIONS
1) Answer all the questions. Number your answers clearly!
2) Write legibly, using only black or blue ink. Do not write in the margins of your answer sheet.
3) Show your work.
4) This is an open-book individual assignment: no collaboration is allowed.
5) Where necessary, round final answers to the nearest FOUR decimals (except when this yields
unsatisfactory results).
a) Use fractions (e.g.
2
3
) and radicals (e.g.
√2
) for greater accuracy.
b) Use scientific notation (e.g. 0.000067 = 6.7 × 10
−5
) for answers very close to zero.
1. The inverse demand for refined sugar is ? =
???
?
?
+?
, while the inverse supply of refined sugar is
? = ? + ?. ??
𝒔
.
1.1 Find the equilibrium price of refined sugar before AND after the imposition of a 20% ad valorem tax