1) Suppose the consumption function for a particular country is c(x), where x is national disposable income. Then the marginal propensity to consume is c'(x). Suppose x and c are both measured in billions of dollars and c'(x)= 0.9+0.3?x. If consumption is 10 billion dollars when x=0, find c(x).
2)The manager of a bookstore determines that when a certain new novel is priced at p dollars per copy, the daily demand will be q= 300-p^2 copies, where 0 is less than or equal to p and p is less than or equal to ?300. Determine where the demand is elastic, inelastic, and of unit elasticity with respect to price.
3) The management of a national chain of fast food outlets is selling a permanent franchise in Seattle, WA. Past experience in similar localities suggests that, t years from now, the franchise will be generating profit at the rate of f(t)= 12000+900t dollars per year. If the prevailing interest rate remains fixed at 5% compounded continuously, what is the present value of the franchise?
If you can help with any of these problems, it would be greatly appreciated. Thank you!!
2)The manager of a bookstore determines that when a certain new novel is priced at p dollars per copy, the daily demand will be q= 300-p^2 copies, where 0 is less than or equal to p and p is less than or equal to ?300. Determine where the demand is elastic, inelastic, and of unit elasticity with respect to price.
3) The management of a national chain of fast food outlets is selling a permanent franchise in Seattle, WA. Past experience in similar localities suggests that, t years from now, the franchise will be generating profit at the rate of f(t)= 12000+900t dollars per year. If the prevailing interest rate remains fixed at 5% compounded continuously, what is the present value of the franchise?
If you can help with any of these problems, it would be greatly appreciated. Thank you!!