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#### MAT10706 QUANTITATIVE METHODS WITH ECONOMICS

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Question 1 Impact of changing price upon revenue and profitOutdoor gas heaters are a popular item in outdoor locations. A factory produces three models of gas heater. Each model requires metal casing and gas fittings. Factory workers use three different types of casing – Chromium, Titanium and Zirconium. Each type also has its own set of gas fittings. Once the heaters are assembled, they are distributed for sale. Heaters are assembled and sold as follows;ChromiumTitaniumZirconiumCost of casing\$75\$150\$240Cost of gas fittings\$38.00\$36.00\$42.00Sale price\$150\$220\$320In addition there are fixed production costs of \$400 for Chromium, \$500 for Titanium and \$600 for Zirconium.Your task is to investigate the cost, revenue and profit associated with each type of gas heater.Steps to complete fo

# Question 2 Impact of ticket levy on revenue

The supply and demand equations are given by

Demand Equation: ???? = 1800 − 9????????

Supply Equation: ???? = 0.00005????2 + 3???????? + 150

By using the Excel random function = Rand(),

We get

 a 0.3 b 0.3

WITHOUT LEVY

Demand: P = 1800 - 3Q

Supply: P = 0.00005 Q2 + Q + 150

WITH LEVY

Demand: P + 50 = 1800 - 3Q

Supply: P = 0.00005 Q2 + Q + 150

Get solution

#### \$ 10.00

Orginal Price : \$ 15.00