lOMoAR cPSD| 11700591
SC1520/Ass1-3/2022
Quantitative Modelling 1
DSC1520
Semester 1
Department of Decision Sciences
Assignments
01 (Units 1,2 and 3) 6 March 887288
02 (Units 4 and 5) 27 March 791190
03 (All Units) 24 April 834735
, lOMoAR cPSD| 11700591
Assignment 01(S1)
This MCQ assignment is compulsory.
Due date Unique number
6 March 2022 887288
Instructions
⊲ Work through Study units 1, 2 and 3 in the study guide before attempting this assignment.
⊲ Answer all the questions.
⊲ Submit your answers electronically through myUnisa.
Question 1
Rewriting the equation
5t + 1
V=
t−1
with t in terms of V , gives
[1] t= 6.
V
[2] t= V +1 .
V +5
[3] t= 1− V .
V −5
[4] t= V +1 .
V −5
Question 2
The demand function of a product is given as
P = 58 − 0,4Q,
where P and Q are the price and quantity, respectively. Determine the consumer surplus of the
product if the market price P = 10.
[1] 1 296
[2] 1 566
[3] 2 880
[4] 3 480
2
, lOMoAR cPSD| 11700591
DSC1520
Questions 3 and 4 are based on the following information:
The demand and supply functions for free-range chickens are
Pd = 50 − 0,6Q and Ps = 20 + 0,4Q,
where P is the price and Q the quantity.
Question 3
The equilibrium price and quantity are
[1] P = 8,00; Q = 70.
[2] P = 32,00; Q = 30.
[3] P = 48,50; Q = 3.
[4] P = 68,00; Q = 30.
Question 4
If free-range chickens are subsidised by R4, the equilibrium price and quantity are
[1] P = 17,20; Q = 3.
[2] P = 29,60; Q = 34.
[3] P = 34,40; Q = 26.
[4] P = 84,00; Q = 170.
Question 5
If the demand function of a commodity is
Q = 80 − 2,5P,
where P and Q are price and quantity respectively, determine the price elasticity of demand when
the price is R20. Indicate whether demand is elastic or inelastic at this price and provide justification
for your answer.
[1] εd = −1,7; because | − 1,7| = 1,7 > 1, demand is elastic
[2] εd = −0,6; because | − 0,6| = −0,6 < 1, demand is elastic
[3] εd = 0,6; because |0,6| = 0,6 < 1, demand is inelastic
[4] εd = 1,7; because |1,7| = 1,7 > 1, demand is inelastic
3
SC1520/Ass1-3/2022
Quantitative Modelling 1
DSC1520
Semester 1
Department of Decision Sciences
Assignments
01 (Units 1,2 and 3) 6 March 887288
02 (Units 4 and 5) 27 March 791190
03 (All Units) 24 April 834735
, lOMoAR cPSD| 11700591
Assignment 01(S1)
This MCQ assignment is compulsory.
Due date Unique number
6 March 2022 887288
Instructions
⊲ Work through Study units 1, 2 and 3 in the study guide before attempting this assignment.
⊲ Answer all the questions.
⊲ Submit your answers electronically through myUnisa.
Question 1
Rewriting the equation
5t + 1
V=
t−1
with t in terms of V , gives
[1] t= 6.
V
[2] t= V +1 .
V +5
[3] t= 1− V .
V −5
[4] t= V +1 .
V −5
Question 2
The demand function of a product is given as
P = 58 − 0,4Q,
where P and Q are the price and quantity, respectively. Determine the consumer surplus of the
product if the market price P = 10.
[1] 1 296
[2] 1 566
[3] 2 880
[4] 3 480
2
, lOMoAR cPSD| 11700591
DSC1520
Questions 3 and 4 are based on the following information:
The demand and supply functions for free-range chickens are
Pd = 50 − 0,6Q and Ps = 20 + 0,4Q,
where P is the price and Q the quantity.
Question 3
The equilibrium price and quantity are
[1] P = 8,00; Q = 70.
[2] P = 32,00; Q = 30.
[3] P = 48,50; Q = 3.
[4] P = 68,00; Q = 30.
Question 4
If free-range chickens are subsidised by R4, the equilibrium price and quantity are
[1] P = 17,20; Q = 3.
[2] P = 29,60; Q = 34.
[3] P = 34,40; Q = 26.
[4] P = 84,00; Q = 170.
Question 5
If the demand function of a commodity is
Q = 80 − 2,5P,
where P and Q are price and quantity respectively, determine the price elasticity of demand when
the price is R20. Indicate whether demand is elastic or inelastic at this price and provide justification
for your answer.
[1] εd = −1,7; because | − 1,7| = 1,7 > 1, demand is elastic
[2] εd = −0,6; because | − 0,6| = −0,6 < 1, demand is elastic
[3] εd = 0,6; because |0,6| = 0,6 < 1, demand is inelastic
[4] εd = 1,7; because |1,7| = 1,7 > 1, demand is inelastic
3
