Microeconomics Answers

The situation in which buyers are able to affect the price of a good is referred to as......

Marginal revenue, shown graphically is the.....

The consumption of chicken changes from 10kg per month to 5kg per month due to salary increase of R500 from R2000 initially received monthly. What is the income elasticity of the demand for chicken?

Suppose that equilibrium price in this market were to REMAIN at P2 while equilibrium quantity INCREASES to Q4. Which of the following could account for such a change?

1.an increase in income, assuming this is a normal good.

2.an increase in the price of a complement combined with an increase in the price of a factor of production.

3.an increase in the price of a substitute combined with a technological innovation reducing production costs.

4.an increase in the price of a complement combined with a decrease in the price of a factor of production.

A firm demand curve is P =1-2Q. The firm has a current price of R1000 and it sells 100 units per day. What is the firms price elasticity of demand?

1. how can we use the production possibility frontier to determine opportunity cost?

10×121^0.5/100^0.5

​=110/10=11

Please how come you got 12.1 as answer

suppose the average product of 6 workers is 150 units of a good and that of 7 workers is 170 units.the margenal product of the seventh worker equals

If demand became zero with a slight rise in the price , what would you call such a demand?

Assume we observe that the equilibrium price of a certain good has DECREASED significantly over the past 5 years, with virtually NO CHANGE in the equilibrium quantity. Which of the following is the most likely explanation? Over the past 5 years:

1.both supply and demand have decreased.

2.demand has increased but supply has decreased.

3.both supply and demand have increased.

4.supply has increased but demand has decreased.