UNC-Wilmington
Department of Economics and Finance
ECN 377
Dr. Chris Dumas
Homework 15 (Due Tuesday, Nov. 17th)
Use the Solver Add-In in Excel to solve the following problems:
1) Suppose the demand curve equation is PQ = 100 – 0.25*Q, and suppose that the supply curve equation is
PQ = 5 + 0.20*Q. Use Solver to find the market equilibrium values of Q and PQ.
2)
max U = 2·V + 1·S,
S, V
Subject To:
V ≤ 10
S≤4
3)
max U = 1.25·C + 1·V,
C, V
Subject To:
C2
V2
10C + 8V ≤ 80
4)
max U = 10 + 3ln(X) + X-1
X
subject to: no constraints
5)
max U = 300X1 + 6000X2 - (1/3)X12 - 3X22 – (1/4)X1X2
X1, X2
subject to: no constraints
6)
2
2
max U  (1 / 3) Y  30  (1 / 2) X  300X  200Y
X,Y
subject to: $2X + $1Y ≤ $100
7)
A monopoly problem, where 5 has been plugged in for PK.
(Notice that there are three choice variables, K, Q, PQ.)
max Pr ofit  PQ  Q  5  K 
K , Q, PQ
subject to:
Q =3K
PQ = 6000 – (1/3)Q,
1