Microeconomics Answers

what are the impacts of the following on the equilibrium condition of monopoly and perfect competition
1 change in technology
2 change in fiscal policy
3 Dynamic in exchange rate
4 change in aggregate monetary policy
5 inflation

There is only one David Garrett, the “David Beckham of Classical Music.” Suppose that Don has obtained the rights to all of Garrett’s recordings, and so he has a monopoly in the market for this music. It turns out that the market demand for Garrett’s CDs is given by P = 120 – 0.2Q, where P is market price and Q is the quantity demanded. Production of these recordings requires paying a fixed cost of $1,000 to rent certain machinery, plus a per-unit payment of $20.

1. What are Don’s profit maximizing output and price?
2. What are Don’s profits, total consumer surplus, and the total deadweight loss at this output and price?

If an increase in total (consumer+producer) surpluses exceeds the deadweight loss, is that an increase in efficiency? Or does any deadweight loss guarantee market failure?

A market is described by the following supply-and-demand curves:
Qs=4p
Qd=400-p

The equilibrium price isand the equilibrium quantity is.
Suppose the government imposes a price ceiling of $60. This price ceiling is , and the market price will be. The quantity supplied will be, and the quantity demanded will be. Therefore, a price ceiling of $60 will result in .
Suppose the government imposes a price floor of $60. This price floor is , and the market price will be. The quantity supplied will beand the quantity demanded will be. Therefore, a price floor of $60 will result in .
Instead of a price control, the government levies a tax on producers of $10. As a result, the new supply curve is:
Qs=4(p-10)

What did you learn? Why is it important? How do the Economics concepts we just covered impact the economy, you and your family, your friends and your employer?

If a 40% change in price results in a 25% change in quantity supplied, then the price elasticity of supply is about

What are the uses of elasticity’s to the private sector

The short run (retail) supply of freshly cut flowers is much less elastic than that of pot plants because
Select one:
A. the price of freshly cut flowers fluctuates much more than that of pot plants.
B. supplies of fresh flowers fluctuate much more with the weather and the season.
C. florists cannot keep freshly cut flowers as long as pot plants. Correct
D. fresh flowers are more likely to be purchased for special occasions.

If the charge for a phone call was higher between 8 AM and 6 PM Monday to Friday than between 6 PM and 8 AM this could be explained by the fact that the demand for phone calls is ________ between 8 AM and 6 PM and the demand for phone calls is ________ between 6 PM and 8 AM.
Select one:
A. perfectly elastic; perfectly inelastic
B. less elastic; more elastic Correct
C. one; zero
D. zero; one

Tax. Determine the SWL.
D: P = 440 - 2Q
S: P = 40 + 2Q
Tax: P = 80