1: Assume that demand for a commodity is represented by the equation P = 10 - 0.2 Q d, and supply by the equation P = 2 + 0.2 Qs where Qd and Q s are quantity demanded and quantity supplied, respectively, and P is the Price. Use the equilibrium condition Qs = Qd ,

1: Solve the equations to determine equilibrium price.

2: Now determine equilibrium quantity.

3: Graph the two equations to substantiate your answers and label these two graphs as D1 and S1.

4: Furthermore; assume the demand for this product increases because of a change in income.

A: graph the new demand curve and label as D 2.

B: What will be the new equilibrium price and quantity compare to the initial one.

C.Is this product normal good or inferior good?

2: Explain what business cycles are.

A: what are four common phases of business cycle? Fully explain and give specific example for each one.

B: write two pages and explain the causes of recent recession and when it started and when it technically ended. Finally why the recent recession was called the worst recession after the great depression..

Question ii.

ADVANCED ANALYSIS Assume that demand for a commodity is represented by the equation

P=75?2Qd.P=75?2Qd.

Supply is represented by the equation

P=?15+4Qs,P=?15+4Qs,

where Qd and Qs are quantity demanded and quantity supplied, respectively, and P is price.

Instructions: Round your answer for price to 2 decimal places and enter your quantity as a whole number.

a. Using the equilibrium condition Qs = Qd, determine equilibrium price.

b. Now determine equilibrium quantity.

Question.

Little Bo Peep Limited produces cup cakes for resale to schools in Jamaica. The company is currently in the process of establishing a master budget on a quarterly basis for this coming scal year, which ends December 31, 2020. Quarterly sales for 2019 were as follows (1 unit = l batch): First quarter Second quarter Third quarter 83,200 Fourth quarter units Unit sales are expected to increase 20 percent, and each unit is expected to sell for $8. The management prefers to maintain ending nished goods inventory equal to 10 percent of next quarter's sales. Assume nished goods inventory at the end of the fourth quarter budget year is estimated at 9,000 units. 1. Prepare a sales budget for Little Bo Peep Limited. (Hint: be sure to increase last year's unit sales by 20 percent.) 4. A large toy company Muttel currently allows toy retailers. to place orders with delivery in 3 weeks. The Gigantic Pocket Monster {Eripokmonjl is a new toy that Muttel has introduced. TOYSareMINE plans to uses the orderupto model [w'rth a llrate target of 9m} to plan orders and deliveries to their retailers. Given that this is a new toy, sales estimates are somewhat uncertain. The market research team is fairly condent that weekly demand would be normally distributed with a mean of 1613 units. However, since this is a new product, demand uncertainty, as characterized by the standard deviation, is harder to estimate and could be either: i. standard deviation of 3:]; or ii. standard deviation of 25 units; or iii. standard deviation of 2D units. In order to budget working capital investment in inventories, you are required to provide an estimate of expected onhand inventories for each level of uncertainty