Name:_____________________ Student Number: _______

1. The line has a slope equal to 3 and passes through the point . Write the equation of .

Equation of : .

2. The demand function is given by , and the supply function is given by , where is the price of one item. What is the equilibrium price? Show your work.

Equilibrium price happens when So we solve . Get , so , so , so is the equilibrium price.

3. The cost function is given by , where is the number of produced articles.

(a) What is the fixed cost?

(a) The fixed cost is 100 (=).

(b) The cost for producing 60 items is (from the formula) . The revenue from selling 60 items is So the profit is .

4. Find the domain of the function .

The domain consists of all numbers such that , i.e., all numbers not equal to —1.