Question 1 What is the maximum amount you would pay for an asset that generates an income of $250,000 at the end of each of five years if the opportunity cost of using funds is 8%67 Question 2 Suppose the supply function for product X is given by Qxs = -30 + 2Px - 4Pz. How much of product X is produced when Px - $600 and P2 = $607 . How much of product X is produced when Px = $80 and Pr = $607 . Suppose Pz = $60. Determine the supply function and inverse supply function for good X. Graph the inverse supply function. Question 3 Suppose the own price elasticity of demand for a good X is -5, its income elasticity is -1, its advertising elasticity is 4, and the cross-price elasticity of demand between it and good Y is 3. Determine how much the consumption of this good will change if: . The price of good X decreases by 6% The price of good Y increases by 7%. Advertising decreases by 20. * income increases by 34 Question 4 A consumer is in equilibrium at point A in the accompanying figure. The price of good * What is the price of good Y? What is the consumer's income? . At point A, how many units of good X does the consumer purchase? Suppose the budget line changes so that the consumer achieves a new equilibrium at point B. What change in the economic environment led to this now equilibrium? is the consumer positively or negatively affected by the price change? 15 35 View the Written Paper Grading Rubric