Problem 1. Solve the following sets of equations for the equilibrium values of X and Y. Show your work: answers without supporting work will not receive full credit.
a. Y = X and Y = (1/2)X + 20
b. Y = -X + 10 and Y = 2X – 10
Problem 2. Simplify the following expressions.
a. X3Y4X-2
b. Y1/3X1/3X-3
Problem 3. Calculate a value for the following expressions. Show your work: answers without supporting work will not receive full credit.
a. 32/34
b. 52/351/35-1
Problem 4. Complete the following table. In the space below show your work for each missing cell.
Year Value of Z Annual % Rate of Change
2003 200 ------
2004 220 10%
2005 264 (a) =
2006 277.2 (b) =
a. Work area for cell (a):
b. Work area for cell (b):
Problem 5. Who is currently Chairman of the Federal Reserve?
Problem 6. Suppose the domestic demand curve for bicycles in Small Land, a small closed economy, is given by the equation P = 50 – Q while the domestic supply curve for bicycles is given by P = Q.
a. Calculate the equilibrium price and quantity for bicycles in Small Land. The equilibrium price equals _________ and the equilibrium quantity equals ________.
b. Suppose the world price for bicycles is $30 and Small Land opens their economy to trade.
i. How many bicycles will domestic producers in Small Land produce if the economy is now open to trade?
ii. How many bicycles will domestic consumers in Small Land consume if the economy is now open to trade?
iii. How many bicycles will Small Land import or export if Small Land opens its economy to trade?