Q1. The marketplace for gilders is primarily competitive and the market demand is: P = 315 - 0.6QD. The mutual marginal costs of firms in the gilder industry are: MC = 9 + 0.3Q. Draw the demand also marginal cost curves. Determine also show how much these firms will sell and what they will charge.
Q2. Elucidate data of an economy is given: C=50+.8Y,I=50.Let the output be 600.Is the economy in equilibrium? Discuss what is the equilibrium level of GDP?