Microeconomics Answers

consider market in which demand and supply equations are given by the following equations.

Qd = 400- 20P

Qs = 40P - 200

calculate equilibrium price and quantity

consider market in which demand and supply equations are given by the following equations :

Qd = 400- 20P

Qs = 40P- 200

calculate the equilibrum price

given the utility function U=150X+40X2-X3, derive average and marginal utility functions, Find the value of X at which total utility is maximum, and the value of X at which average utility is maximum?

If the production function is given by f(x1, x2) = min{x1, x2} +

min{x3, x4}, what is the minimum cost of producing one unit of output?

49. A firm in a competitive market that seeks to maximize profits should employ workers to the point where:

c) the value of the marginal product of labor equal to the wage as the marginal cost of the factor

d) the marginal product of labor equal to wage

Which one is correct c or d?

The consumer's utility is given by u(x,y)=16x-3√√x+y. The price of good 2 is normalized to 1. Find the change in consumer's surplus if the price of good 1 changed from 10 to 5.

Answer: 18.35

Consider the following productivities in Table 1: TABLE 1: ZAMBIA- MALAWI TRADE PATTERNS

Services Manufacturing

Zambia 2 Units/hr. 6 Units/hr.

Malawi 6 Units/hr. 3 Units/hr.

How equilibrium price and quantity or determine the market using the demand and supply concepts explain?

Illustrate and carefully explain the impact of an increase in the income tax rate from 25 percent to 35 percent on the demand for labour, supply of labour, equilibrium wage and level of employment. 

Suppose that 20,000 of the employed switches to jobs in the underground economy. When interviewed by STATIN, 50% of these switchers report that they are not working and not seeking work, while the other 50% report that they are not working but seeking work. Explain what happens to the official unemployment rate and the “true” unemployment rate.