1. Plot annual data on real non-residential investment over time as a continuous line
2. Using the Econ Chart add-in, overlay recession bars on your diagram
3. Introduce a trend line into your figure
4. Extend the trend line beyond the final date for a further five years, that is from 2016 to 2020
5. What is the equation of the trend line?
6. What are the actual forecasted values for investment in each of the years from 2016 to 2020?
7. Economically interpret and comment on the actual series for non-residential investment in relation to the
recessions shown on your figure. You should use economic reasoning to answer this question. Use a text box
on the Excel spreadsheet to answer this part of the question.
Make your figures produced in Excel as professional as possible. Professionally produced graphs will receive extra
credit. Graphs which are copied and pasted using the “snipping tool” will receive little or no credit.
Demand and Supply Curves & Excel’s Solver
Q2: The initial equations for a demand and supply system are given below
?? = 60060 − 10000?
10000? = 60060 − ??
? = 6.006 −
?? = −33300 + 33300?
33300? = ?? + 33300
? = 1 +
? is quantity demanded or supplied and ? is price in sterling.
Find the equilibrium values for quantity demanded and quantity supplied along with equilibrium price for
the set of equations above. Use each of the approaches below and report your findings in separate Excel
a) A graphical approach
b) Excel’s solver
c) An algebraic approach
Compare and contrast the various types of market structures which can exist in market economies. What
are the advantages and disadvantages to each type of market structure as far as consumers and businesses
are concerned? Is one type of market structure unambiguously better than the others?