Draw a graph for this equation. Use the quantity produced in the y-axis, and the units of labour in the x-axis.
This assignment carries a 30% weight of the final grade for this module.
• Submit one single document and not lots of different files.
1. Consider market supply curve which passes through the intercept and from which the market equilibrium data is known, this is, the price and quantity of equilibrium PE = 50 and QE=2000.
a. Considering those two points, find the equation of the supply.
b. Draw a graph of this line.
1. Considering the previous supply line, determine if the following demand function corresponds to the market demand equilibrium stated above. QD = 3000 – 2p .
3. The production function of a firm is described by the following equation Q = 10,000L− 3L² where L stands for the units of labour.
a) Draw a graph for this equation. Use the quantity produced in the y-axis, and the units of labour in the x-axis.
b) What is the maximum production level?
c) How many units of labour are needed at that point?