Question 2

I need help as soon as possible

W (20 marks) 2.1 2.2 2.3 Explain the concept of utility maximisation. (4) Given the following demand function: Q = -2P 4- 80. At what price is total revenue maximized? (6) Read the following information and answer the questions that follow. The market for oranges is given by the following equations: P = 90 - 2.5Qd P = 2Qs 2.3.1 What is the price elasticity of supply of oranges? (4} 2.3.2 The government considers introducing a price oor on the prices of oranges so as to protect farmers. Evaluate the market for oranges if the price oor is set at a price of 20, and discuss whether there will be an equilibrium or not. (6)