Question: a. Given that annual demand and supply for the E&E Electronics Company is given by: where Q is output, P is price per unit, M

a. Given that annual demand and supply for the E&E Electronics Company is given by:

where Q is output, P is price per unit, M is income, and P_Rthe price of a related good.

The manager estimates the values of M and P_R will be RM32,000 and RM4, respectively.

Determine the following functions:

i. Forecast demand function [2 Marks]

ii. Inverse demand function

[2 Marks]

iii. Average revenue function

[2 Marks]

iv. Marginal revenue function

[1 Mark]

b. Suppose the demand for good X is.(Q: quantity, P:price). Evaluate the type of elasticity of demand at price is RM0.5 and RM2.5 by using the Total Revenue (TR) approach.[3 Marks]

a. Given that annual demand and supply for the E&E Electronics Company is given by:

where Q is output, P is price per unit, M is income, and P_Rthe price of a related good.

The manager estimates the values of M and P_R will be RM32,000 and RM4, respectively.

Determine the following functions:

i. Forecast demand function [2 Marks]

ii. Inverse demand function

[2 Marks]

iii. Average revenue function

[2 Marks]

iv. Marginal revenue function

[1 Mark]

b. Suppose the demand for good X is.(Q: quantity, P:price). Evaluate the type of elasticity of demand at price is RM0.5 and RM2.5 by using the Total Revenue (TR) approach.[3 Marks]

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