Microeconomics Answers

at break even point

how demand of factors of production differs from the demand of good and services

The following are proper explanations for why the Supply Curve has a positive slope, EXCEPT:

Question options:

As price per unit increases, then profit per unit will also increase for sure, motivating more production.


The supply curve has a positive slope due to increasing marginal cost of production.


As price per unit increases, it will motivate the least efficient producers to enter the market.


As production increases, the producer will be forced to charge a higher price to cover the higher marginal cost of production for the extra units produced.

What three institutions influence economics the most? Explain how each influences economics and provide examples of each.

If the supply equation is given as Qs = -200+10P, the price elasticity of supply between R40 and R50, calculated using the arc elasticity of demand is

If the supply equation is given as Q=-200+10P, the price elasticity of supply between R40 and R50, calculated using the arc elasticity of demand, is?

Altrix makes a line of high tech tools that are used to repair medical devices. The company has been
asked to produce a new tool that would require a metal spring they do not currently make. Before they
accept the contract for the new tools, managers must decide whether to make the spring in a part of the
factory that is currently idle, or buy it pre-made from another company. The contract is for 8,000 tools,
and each tool needs a spring.

Here are the demand and supply schedules for pizza: (I arranged them like this because a table would be hard to draw.

Price($/cup) 1 2 3 4 5 6 7

Quantity Demanded (pizza/day) 440 415 390 365 340 315 290

Quantity supplied (pizza/day) 330 360 390 420 450 480 510

A) What is the equilibrium price of pizza

B) How many cups of coffee would be exchangedd at this price

C) How would I graph the demand and supply curve on the same graph?

D)Supposed that an increase in population increases quantity demanded at every price by 110 cups per day. What is the new equilibrium price of coffee

E) Has there been movement along or a shift of the demand curve. Has there been movement along or a shift of the supply curve.

Your brother in law manages a corn farming business . At a recent family gathering , he confided in you that he is very happy because he expects a record crop of corn this year . Your brother in law is fully aware that all the corn farmers will have record crops as well . Why is he so happy ? Explain fully in 3 lines

Derive the indirect utility function form the given direct utility function . , dddddP 0 d,. Use Roy’s identity to construct demand functions for the two goods dP and d,. Are these same as demand functions derived from the direct utility function?