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A. Consider a monocentric urban economy in which every household has the same income and the same tastes. One worker from each household commutes to the CBD. Amenities and public goods are the same throughout the urbanized area. Assume that annual commuting cost per mile for each commuter is t=$500. Housing is a normal good.
a. Give a general expression for the slope of the housing-price curve. What are the units of the housing price curve?
b. The Smith family rents a1000 sq. foot apartment. What is the slope of the housing price curve where the Smith family lives? Explain.
c. The Jones family rents a 2000 sq. foot apartment. What is the slope of the housing price curve where the Jones family lives? Explain.
d. Which family lives closer to the city center? Explain.
e. Which family has a higher utility level? Explain?
A ______________________ system means higher taxes equal more services.
1. An industry consists of a monopolist that serves two distinct market segments. The law of one price prevails within each market, but it can charge different prices in each market. The monopolist has no fixed costs.
(a) Assume that marginal costs are zero such that e=0 and that there are no comer solutions. Suppose the respective demand curves for the monopolist's product in market 1 and 2 are given by qi(p) = as - bp and calpa) = 12 - bap?2. Under what conditions on the parameters a, by, az, and by is price discrimination not optimal for the monopolist?
(b) We now assume that marginal costs are positive and constant such that e> 0 and that there are no corner solutions. If we also assume a constant elasticity of demand function of the form (p) = up for i = 1, 2. Under what conditions is price
discrimination not optimal for the monopolist?
What would cause Aggregate Supply to shift ?
Qd=30-p Q's =2p
Examine the impact of COVID 19 on Ghana's Labour Market
Is the following statements true, false, or uncertain? Explain why
A widespread increase in the mortality rate among people aged 35-50 would likely reduce both the rate of migration between states and the elasticity of labor supply in any given state.
Adam is the owner of a small grocery store in a busy section of Boulder, Colorado. Adam’s annual revenue is $200,000 and his total explicit cost (Adam pays himself an annual salary of $30,000) is $180,000 per year. A supermarket chain wants to hire Adam as its general manager for $60,000 per year.
a. What is the opportunity cost to Adam of owning and managing the grocery store ?
b. What is Adam’s accounting profit ?
c. What is Adam’s economic profit ?
Over a month ago the government established a price ceiling for pork. Consequently, there is a shortage in the market due to this price control. Presently, the government wanted to increase the price ceiling for pork which may reduce the shortage in demand.
1. Demonstrate and explain a graph the three changes in the price due to the price control of the government with no shift in demand and supply. The three price phases are before the price control, the first price control and the third price control.
2. Assign value in your graphs and compute the three consumer and sellers surplus. Is there a deadweight?
Please read this article to guide you:
https://www.philstar.com/headlines/2021/02/26/2080490/da-open-higher-pork-price-ceiling
Let assume that the table's data represent the production of orange versus apple on a Florida farm.
Combination Orange Apple
A 100 0
B 90 15
C 70 30
D 40 45
E 0 60
