Question: Question 2 The total cost and demand functions for two goods and 10, are given by the equations: and where Pand are the prices of

Question 2 The total cost and demand functions for two goods

Question 2 The total cost and demand functions for two goods and 10, are given by the equations: and where Pand are the prices of the first and second goods respectively. (a) Write down the equations for (i) the total revenue and (ii) profit. (6 marks) (b) Determine the number of units of each good which should be sold to maximise revenue. Calculate the maximum revenue. (6 marks) (C) Determine the number of units of each good which should be sold to maximise profits. Calculate the maximum profit. (6 marks) (d) Calculate the price elasticity of demand at maximum revenue and maximum profit for each good. Comment. (7 marks)

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