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Question 1 The demand and supply functions of a good are given as P = -2Qd + 50 1 P =zQs + 25 a) Plot both supply and demand equations on a graph. b) Find the equilibrium price and quantity. Question 2 Solve the following set of equations using the simultaneous equation method. [10] Question 3 x + 3y -z = 4 2x + y + 2z = 10 3x - y + z = 4 Suppose that a monopoly faces the following demand P = 100 - Q [6] [6] Further, assume that the fixed costs are £ 8 and variable costs per unit are £ 2. So the cost function is TC = 8+2Q a) Develop profit function and comment on its shape. [2] b) Use the profit function to find the level of quantity that enables the firm to break even [where total costs and total revenue are equal]. [5] c) Find the level of quantity that leads to maximum profit? [5] d) Find the maximum profit? [5]