Correct and clear solutions.

All the information is provided check the attachments.

1.

(i)

Write short notes on the following:

a)

substitute and complementary goods

b)

price controls

c)

indifference curves

d)

inferior and giffen goods.

(ii) Define the term cross price elasticity of demand and explain its value for

substitutes and complementary commodities.

2.

Matrix X gives the details of component parts used in the make up of two products P, and P, matri: Y gives details of produc's made on each day of the week as follows: Matrix Y Matrix X Parts ABC Man 2 Tues 2 3 Products Wind Thur 2 2 Fri Use matrix multiplication to find the number of component parts used on each day of the week.The data below relate to products A and B, manufactured by Mauzo Limited. Q = 2(P2 - P;) + 4 is the demand function for product A Q3-P - -P, + 52is the demand function for product B Q is the quantity of product A Of is the quantity of product B P is the selling price of product A Py is the selling price per unit of product B The variable costs per unit arc sh. 9 and sh. 12 for products A and B respectively. Required: The total revenue function of Manzo Limited. ii) The total cost function of Mauro Limited The total profit function of Mauro Limited, ivi The profit maximizing prices and quantities of products A and B