Microeconomics Answers

A manufacturer can produce radios at a cost of $10 apiece an estimated that if they are sold for x dollars, consumers will buy approximately80-x radios each month. Express the manufacturer’s monthly profit as a function of the price x, graph this function, and determine the price at which the manufacture’s profit will be greatest.

What is Diminishing Marginal utility (DMU)? Explain and illustrate this concept graphically using the curves of total and Marginal utility.

A person's salary increases from E5000 a month to E7000 a month. As a result of this change in salary his consumption of good X decreases from 20 units per month to 15 units per month while the consumption of good Y increases from 15 units per month to 20 units per month. Give the appropriate comment?

4. a. Name a product that has a price that adjusted very frequently in the last year. Explain why.                 

b. What is the difference between monopolistic competition and oligopoly? Explain with local   examples. 

relationship between three stages of short-run production and production elasticity

If Maria estefan disposable IncomeIncreaseFrom 600 to 650

And her level of personal consumption expenditures increase from 450 to 520 You may conclude that’s her marginal propensity to

2. What will happen to the equilibrium price and quantity of butter in each of the following cases? You should state whether demand or supply or both have shifted and in which direction using the appropriate diagrams:

a) A rise in the price of margarine

b) A rise in the price of bread

c) A rise in the demand for bread

d) An expected increase in the price of butter in the near future

e) A tax on butter production

Suppose we observe that the equilibrium price of a particular 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:

A. both supply and demand have decreased.

B. supply has increased but demand has decreased

C. both supply and demand have increased

D. demand has increased but supply has decreased.