Q.1.

Define the following: (a) Break even point

Identity function

(b) Market Equilibrium price

(c)

Q.2. Which of the following is(are) not a function (without any assumptions): 1. Absolute
Function
2. Square root function
3. Hyperbolic function
Q.3. The demand function of a product is D= 7000 50p, where p is the price. The cost
function is given by
C = 20000 + 25D. At what price is the break even production
attained. Also explain what does the answer signify in real life business scenario?
Q.4. Express the number of units q that can be sold as a linear function of price p. 1000 units
of a product can be sold at a price of Rs 5 per unit and 1200 units at a price of Rs 4.50 per
unit.
Q.5. Suppose the demand law is 3p+2d=27 and the supply law is 6p-2s= 9 where d and s
represent quantity and p the price. What is the market equilibrium price? Suppose the
government provides a subsidy of Re 1 per unit to the suppliers, how does the equilibrium
price change? Also find the total government expenditure.
Q.6. At a price of $12.59 `per box of Apple, the supply is 595,000 boxes and the demand is
660,000 boxes. At a price of $13.19 per box, the supply is 695,000 boxes and the demand is
590,000 boxes. Assume that the relationship between price and supply is linear and that the
relationship between price and demand is linear. Find the market equilibrium point.
Q.7. Suppose R & B Beverage Company has a soft-drink product that has a constant annual
demand rate of 3,900 cases. A case of the soft drink costs R & B $3.00. If ordering costs are
$20 per order and inventory holding costs are charged at 25%, what are the EOQ and cycle
time in days for this product (time between two orders)?