Do elasticity and slope mean the same thing? Explain. 2. Explain the impact of the intercept and the coefficient in the following equations; where Q x represents quantity demanded and P x represents...

1. a) What is the “law of demand”? How do managers use it in decision making? (5 marks) b) Do elasticity and slope mean the same thing? Explain. (5 marks) 2. Explain the impact of the intercept and the coefficient in the following equations; where Qx represents quantity demanded and Px represents price of the product (2 marks each): a) Qx = 450 – 25Px; b) Px = 300 – 0Qx; c) Qx = 75 – 85Px; d) Px = 100 – 25Qx; e) MR = 2 – Qx (MR is marginal revenue) 3. a) Derive the demand function from the following: (i) P = 80 – 0.8Q; (ii) TR = 63Q – 4Q2; (iii) MR = 45 – 0.75Q; (iv) Q = 778 – 24P (4 marks) b) Derive the TR from the following: (i) Q = 200 – P; (ii) P = 378 – 4.2Q; (iii) P = 87; iv) MR = 20 – 0.5Q (4 marks) c) Convert the demand function to a compressed demand function Qx = – 400 – 25Px + 35Ps – 5Pc – 0.01Y (given: Px = $40; Ps = $38; Pc = $25 and Y = $10,000 (2 marks) 3. Given the following estimated demand function: Qx = 600 – 30Px + 35Ps – 45Pc + 0.1Y (where Qx represents quantity demanded; Px represents price of the main product; Ps represents price of the substitute; Pc represents price of the complement and Y represents income) a) Interpret the value of each coefficient in the estimated demand function. (4 marks) b) If there is a $9.28 decrease in Pc, what impact it would have on Qx? (2 marks) c) Given: Px = $8; Ps = $18; Pc = $5 and Y = $20,000. What is the...