Microeconomics Answers

Suppose city bus raised the bus fare by 7%. With the aid of a diagram under what condition the total expenditure of passengers on the bus services will decrease because of the rise in fare.

in early 2015 the price of condominium in singapore rose. in a demand and supply model, shifts in what curve or curves have brought about the higher price?

Assume an economy produces only hamburgers and the base year is 2009.

Quantity Produced Price
2009 2010 2009 2010
Hamburgers 2,000 3,000 $2 $3


43. What is the Real GDP in the year 2010?

What is per unit cost?

What is the total cost formula?

consider the following short run production function q=100 l-l^2. where q is the output level and l is the labour input. if the price of output in the market is 50 dollars and labour costs 1200 dollars per hour. how many hours would the firm use to maximize profits. what is the profit maximizing level of output?

A maize farmer produces using two inputs labour(L) and fertilizer(K) the farmers total cost function is given as TC=(0.5r+√(rw)+0.5w)q, where q is output of maize in bags and r andw are the unit prices of fertilizer and labour respectively. Fertilizer is measured in bags. If the farmer's objective is to produce sh 10000 bags of maize, and fertilizer costs sh 1600 per bag and labour costs sh 100 per hour, how many bags of fertilizer will the farmer require to minimize cost?

Here is the daily demand schedule and supply schedule of a cup of small latte in a local coffee shop:
Price ($) Demanded quantity (#) Supplied quantity (#)
6 0 1000
5 200 800
4 400 600
3 600 400
2 800 200
1: 1000 0
Give the coefficients in the equations for demand and supply: Qd = a+ bp and Qs = alpha a + alpha bp (the p is not alpha only a and b) find a, b, alpha a, alpha b

Using the AE/Y model, show how the AD Curve is derived using output of $1.5T, $2T, and $2.5T, and a Price Level of 90, 100, and 110.

Assume that the MPC is .8, calculate the effects of an increase in G of $30B on output, consumption and savings.