Quantitative Analysis: Multiple Choice and Working Questions

Running head: QUANTITATIVE ANALYSSIS 1
Quantitative Analysis
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QUANTITATIVE ANALYSIS 2
Section A: Multiple Choice Questions.
MCQ 1.
Answer is B
MCQ 2.
Answer is C
MCQ 3.
Answer is D
MCQ 4.
Answer is C
MCQ 5.
Answer is C
MCQ 6.
Answer is B
MCQ 7.
Answer is A
MCQ 8.
Answer is B
MCQ 9.
The answer is D
MCQ 10.
Answer is B

QUANTITATIVE ANALYSIS 3
Section B: working Questions.
Question 1: supply and Demand.
a) Qd = K – 4P and Qs = 1 + 3P
Equilibrium occurs when Qd = Qs (Mankiw, 2014).
K – 4P = 1 + 3P
7P = K – 1
P = 1/7 (K – 1). As the equilibrium price in terms of K...........................1
Then;
Qty = 1 + 3 (1/7 (K – 1))
Qty = 1 + 3/7 (K – 1). As the equilibrium quantity in terms of K ..................... 2
But when K = 3 (Mankiw, 2014).
From P = 1/7 (K – 1).
P = 1/7 (3 – 1) = 2/7.
And Quantity, from Qty = 1 + 3/7 (K – 1).
Qty = 1 + 2/7 (3 – 1)
Qty = 13/7.
Demand and Supply diagram.
Qty
Price
S
D
13/7
2/7
3
1