Microeconomics Answers

Choose a product of your interest to determine the most important determinants of its demand. You need to develop this into a generic demand function of the form
Qx = a0 + a1 Px + a2 I + a3 Py ……

Graphically show and explain the effect of the shift of either demand or supply curve or the shift of both on the market equilibrium price and quantity for each of the following events. c. Consider the market for brown rice and assume that this market is initially in equilibrium. Suppose that there is an increase in income and that brown rice is an inferior good. At the same time there is a decrease in the number of farmers producing brown rice. What happens in the market for brown rice given that the effect of the increase in income is stronger?

Graphically show and explain the effect of the shift of either demand or supply curve or the shift of both on the market equilibrium price and quantity for each of the following events.b. Imagine that the demand for Bangladesh’s Cricket Team’s Jersey has increased due to an upcoming Cricket match. At the same time, there is a workers’ strike going on at the Chittagong seaport and Jersey manufacturers have very little supply of the raw material needed to make these Jersey. Draw a demand‐supply diagram to show what happens in the market for Bangladeshi Jerseys. Assume they are initially at equilibrium.

Graphically show and explain the effect of the shift of either demand or supply curve or the shift of both on the market equilibrium price and quantity for each of the following events.
In Swaziland, farmers can either plant corn or wheat on their land. Both the wheat and the corn markets in Swaziland are initially in equilibrium. The price of corn increases, what happens in the market for wheat?

Which type of market failure does the following represent?
(i) Construction of a bowling alley in the center of a busy town.
(ii) Charlie loves watching Sponge Bob on his local TV station but he never sends any money to support the station during its fund raising drives.
(iii) Buying a used appliance on Ebay
(iv) A mango tree in an open lot

What type of market failure is: A mango tree in an open lot?

Hello
I had an inquiry about stocks and bonds. Do sole proprietorship and partnership have the ability to sell or buy socks as well as bonds? Or could only corporations do that.
Thank you

Two firms, VolgaBus and GMB, are competing to sell 100 buses to MetroTravel, a cityowned
bus company. They each submit a sealed bid to get the contract, with the contract
going to the lowest bid. Each firm has the option of submitting a low-price bid of $15 000
per bus, or a high-price bid of $20 000 per bus. In the event of a tie, the city will buy 50
buses from each firm.
a. Draw a payoff matrix for this simultaneous game. (4 marks)
b. Based on your matrix from part a., what will the Nash equilibrium be? Explain in detail
how you arrived at your answer. (4 marks)

Without actually calculating the elasticity of demand, as an estimation, is the demand for McCain french fries elastic or inelastic? Why, using theoretical reasoning.