The sales function for a product is given by S(x)=119+40.5x2−0.5x3 where x represents thousands of dollars spent on advertising, 0≤x≤54 and S is in thousands of dollars.x Find the point of diminishing returns. Enter the amount spent on advertising as well as the sales in dollars. Amount Spent on Advertising:$ ____ total Sales: $___

As distance to the city center increases, an office firm’s willingness to pay for space [increases / decreases / remains] at a(n) [increasing / decreasing / constant] rate.

The demand function for apples is the following. Qn = 10 – Pn + 0.2Y +0.5 Pc – 2Ps + 0.2A Where: Qn = annual sales of apples (millions of kilos) Pn = price of apples (£1 per kilo) Y  = disposable income in the UK £trillions (£10 trillions) Pc = price of a pies £ per kilo (£2 per kilo) Ps = price of pear (£2 per kilo) A = advertising measured in hundreds of thousands of £5 (use as 5 in your calculations)   Q. How much will the demanded quantity change if the price of apples increases to 1.5? a. It will decrease by 0.4 million kilos. b. It will decrease by 0.5 million kilos. c. It will increase by 2 million kilos. d. It will increase by 0.5 million kilos. e. All the other answers are wrong.

A search good is a product that: a) is not yet available, but consumer desires for it are known. b) can easily be evaluated before purchase. c) is difficult to locate, so it takes time to find it. d) is produced with rare or hard-to-find inputs.