Part B: Marks [2]

Two points (p, q) on a linear supply function are ($2.55, 98,000) and ($6, 195,500).

1. Determine the supply function q = f(p).
2. What price would result in supplier offering 145,000 units for sale?
3. Interpret the slope of the function.
4. Determine the p intercept.
5. Sketch f(p)

Part C: Marks [2]

The supply and demand functions for a product are; qs=6p2-600 and qd=5p2-20p+900 . Determine the market equilibrium price and quantity. Also draw the supply-demand equilibrium graph.

Part D: Marks [1]

A piece of machinery is purchased for $500,000. Accountants have decided to use a straight-line depreciation method with machine being fully depreciated after 12 years. Letting V equal the book value of the machine;

1. Assuming that there is no salvage value, determine the function V=f (t).
2. If the machine can be resold after 12 years for $60,000. Determine the function V=f (t).