Thanks to visit codestin.com
Credit goes to www.scribd.com

Scribd
Upload
19 views4 pages

General Revision Questions - 2019

The document contains a series of mathematical problems related to economics, including finding equilibrium prices and quantities, matrix inversions, total differentials, profit maximization using Lagrangian methods, utility maximization, integration of functions, and calculating consumer and producer surplus. Each problem requires applying various mathematical techniques to derive expressions or values based on given functions and conditions. The problems are structured to test understanding of economic concepts and mathematical applications in economics.

Uploaded by

thobeka snothile
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
19 views4 pages

General Revision Questions - 2019

The document contains a series of mathematical problems related to economics, including finding equilibrium prices and quantities, matrix inversions, total differentials, profit maximization using Lagrangian methods, utility maximization, integration of functions, and calculating consumer and producer surplus. Each problem requires applying various mathematical techniques to derive expressions or values based on given functions and conditions. The problems are structured to test understanding of economic concepts and mathematical applications in economics.

Uploaded by

thobeka snothile
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 4

Revision (General)

1. 2If a market is defined by a quantity demand function: Qd = w - xP and a


quantity supplied function: Qs = y + zP, find an expression for the equilibrium
price and quantity.
2Do you require any conditions on the market parameters for your result to make
economic sense? Explain.

a b 
Find an expression for the inverse of W when W =  c
2.
 d 
3. Use matrix inversion or otherwise to solve for equilibrium values of P i (i =
1,2,3) for the following markets if it is known that:
3P1 + 5P2 + P3 = 36
P1 + 2P2 + 4P3 = 42
4P1 + 3P2 + 2P3 = 38

4. Find the value of a, b and c for which the inverse of A is B (i.e. A-1 = B) when

1 3 3  a b c
A = 1 3 4 and B = - 1 0 1
   
1 4 3 - 1 1 0

5. A production function is given by Q = LxKyRz where L = labour, K = captial and


R = raw materials.

(a) Find an expression for the total differential dQ if L = 100 + 3t ; K = 80 + 4t2


and R = et
(b) Find the total derivative dQ/dt

6. Find the total partial derivatives §Z/§u and §Z/§v if:

Z = ayx2 + by2x2 – cu3, where x = u2 + v and y = ln(u)


Z = f(x1, x2, x3) where x1 = 4u3 – v-1, x2 = 2u2 – 2v3 and x3 = e2u
7. Use logs to calculate dy/dx when:
(a) y = (e2x+1/e2x-1)
(b) y = [(2x2 + 3)/(x2+9)]1/2

8. A farmer faces the profit function:

Π = 110x – 3x2 – 2xy – 2y2 + 140y

where x = sides of beef and y = hides. Knowing that there are two sides of beef for
every hide, use the Lagrangian multiplier method to find the level of output at which
the farmer will maximise profits? Assume the second-order condition is satisfied.
[8 marks]

9. Given U = 2x + 2xy + 5y and Px , Py and B are unknown exogenous variables,


Use the Lagrangian technique to find the optimal levels of purchase x (x*) and y (y*)
and λ (λ*) expressed in terms of the exogenous variables.

10. A consumer, purchasing two goods x and y, is known to have a utility function:
U = x0.5y0.3.
His income (B) = R140, the price of x (Px) = R10 and the price of y (Py) = R3.
(a) Using the Lagrangian Multiplier method, find the values of x and y which
maximise utility for the consumer.
(b) Calculate the marginal rate of substitution at the utility-maximising point.
Use the differential equation method.

11. Integrate the following functions


2
∫ 2𝑥𝑒 𝑥 𝑑𝑥

∫ 𝑥√𝑥 2 + 5 𝑑𝑥
(2𝑥 3 +3𝑥)
∫ (𝑥 4 +3𝑥 2 +7) 𝑑𝑥

𝑒 √𝑥
∫ 𝑑𝑥
√𝑥
1 1
∫ 𝑥−1 + (𝑥−1)2 𝑑𝑥
∫(2𝑥 − 1)ln(𝑥 − 1) 𝑑𝑥
2
∫1 𝑥𝑒 2𝑥 𝑑𝑥
1
∫0 𝑒 3𝑡 𝑑𝑡
1 3
∫−1 √𝑥 5 𝑑𝑥
2
∫1 𝑥𝑙𝑛𝑥𝑑𝑥
𝑒
∫1 √𝑥𝑙𝑥(𝑥 2 )𝑑𝑥
4 𝑙𝑛𝑥
∫1 𝑑𝑥
√𝑥

12. Find an expression for Total Cost in terms of Q, given 𝑀𝐶 = 𝑓(𝑄) = 𝑄 + 5, and
TC=20 when production is zero.

13. Given 𝑀𝐶 = 2𝑄 2 − 6𝑄 + 6; 𝑀𝑅 = 22 − 2𝑄 𝑎𝑛𝑑 𝑓𝑖𝑥𝑒𝑑 𝑐𝑜𝑠𝑡 = 0


Find total profit for maximising firm when MR=MC.

14. Find a measure of consumer surplus at Q=5 for the demand function P=30-4Q.

15. If P=3+Q2 is the supply curve, find a measure of producer surplus at Q=4.

16. The inverse demand and supply functions for a good are, respectively
P=-2Q+14; P=Q+2
Find the market equilibrium values of P and Q.
Find the total surplus (CS+PS) when market is in equilibrium.

You might also like