QUIZ 1
Name
Prob. 1 A minicomputer purchased at a cost of $60,000 in 1994 has a scrap value of $12,000 at the end of four years. If the straight-line method of depreciation is used:
a. Find the linear equation expressing the minicomputer's book value at the end of t years.
b. Find the minicomputer's book value at the end of the third year.
Prob. 2 The quantity demanded of a certain brand of videocassette recorder (VCR) is 3000 per week when the unit price is $485. For each decrease in unit price of $20 below $485, the quantity demanded increases by 250 units. The suppliers will not market any VCRs if the unit price is $300 or lower. But at a unit price of $525, they are willing to make available 2500 units in the market. The supply equation is also known to be linear.
a. Find the demand and supply equations.
b. Find the equilibrium point.