Microeconomics Answers

With the aid of appropriate diagram analyse the simultaneous effect of an increase in the price of substitute to the commodity A and an improvement in technology for producing the commodity on the market price and quantity of commodity A

A consultant estimates the Price / Quantity relationship for New World Pizza to be P = 50 – 5Q. (Hint: For what follows, you might find it helpful to calculate marginal revenue.)

a. At what output rate is demand unitary elastic?

b. Over what range of output is demand elastic?

c. At the current price, eight units are demanded each period. If the objective is to increase total revenue, should the price be increased or decreased? Explain.

If a market begins in equilibrium and then the demand curve shifts​ leftward, a
A.
surplus is​ created, which is eliminated by a rise in price.
Your answer is not correct.B.
shortage is​ created, which is eliminated by a fall in price.
C.
surplus is​ created, which is eliminated by a fall in price.
This is the correct answer.D.
shortage is​ created, which is eliminated by a rise in price.
E.
surplus is​ created, which is eliminated by the supply curve shifting leftward.

As a policy maker of a country,on which view of economy will you base your policy measures- positive or normative? Explain.

Cross-price elasticity refers to?
The formula for cross-price elasticity is?
Suppose computer prices at an office supply store fall from $1,000 to $900 and as
a result the quantity demanded of typewriters decreases from 40 to 20 per month.
The cross-price elasticity of demand is closest to?
Assume apples and oranges are substitutes. Suppose apple growers launch a
successful advertising campaign that convinces consumers apples are a better
product. As a result the cross-price elasticity of apples and oranges will become?
Suppose the price of video games falls from $40 to $20 and as a result the
quantity demanded of scooters falls from 40,000 to 10,000 per year. The value of
the cross-price elasticity of demand is?
i need answers with explanations

If the price of a good rises by 10 percent and quantity demanded falls by 20
percent, we can predict that
please i need help and explanation for the answer

Cletus has two vehicles: a 4x4 Ford pick-up truck that runs on diesel and a 1969 Dodge Charger that runs on gasoline. Suppose Cletus spends a fixed amount of money on automotive fuel each week. Cletus receives utility from buying diesel and gasoline because the fuels allow him to drive his vehicles.

Cletus currently purchases five gallons of gasoline per week and four gallons of diesel per week. Diesel costs $3 per gallon and gasoline costs $2 per gallon. At his current rate of consumption, Cletus spends all of his weekly fuel budget. His marginal utility (MU) from the fifth gallon of gas is 50 and his marginal utility from the fourth gallon of diesel is 60.
1.1. True or False: Cletus's current consumption levels of diesel and gasoline maximize his total utility.

Suppose that a person’s preferences are such that there is a (small) ε > 0 such that x ∼ y if ∥x − y∥ < ε, but if the bundle x has more of all goods than does the bundle y, and if ∥x−y∥ ≥ ε, then x ≻ y. Show that there is no utility function that represents such preferences.

what must you do to raise revenue when price elasticity of demand is elastic