Microeconomics Answers

Consider a competitive market for apartments. What would be the effect on the equilibrium output and price if the consumer’s income increases?

Consider an economy can produce two goods butter and guns. Draw Production possibility frontier for butter and guns. Assume that scientific inventions have doubled the productivity of society's resources. Redraw the Production Possibility frontier

please explain with graph

Draw a demand and supply curve for the real estate market and explain

Draw a production possibility frontier (PPF) for an economy between the clean environment and the quantity of industrial output. What determines the shape of the PPF? Using this PPF, explain in detail the trade-off that the Society faces.

In the current pandemic-related GDP growth slowdown across the world, which industries or sectors in the Indian economy do you consider to have most benefited from the Covid-19 crisis and why? Explain and highlight in detail using the Demand-Supply analysis to substantiate your argument. Justify your analysis by supporting it with facts-cum-online data and substantiate your argument by extensively using graphs to highlight your answer

11 1. Recall the lemons problem at the start of the chapter. Some used cars are peaches, worth $3,000 to buyers and $2,500 to sellers, and some are lemons,. worth $2,000 to buyers and $1,000 to sellers. There is a fixed supply of cars and unlimited demand. Suppose there are twice as many peaches as lemons. Assume buyers can't tell the quality of a given car, while sellers can. What do the supply and demand curves look like? In the text, we asserted that markets clear at $2,666.67. Are there other market clearing prices?

The demand and supply equations for a commodity (in a free market) are given as;

Qd = 10 - 2p

As = 4p - 8

a. Given that p is in naira, Qd and Qd are in kg. Determine

(a) the equilibrium price and

(b) the equilibrium quantity

b. (i) if the price (p) were to be N4.00, what will be excess supply?

(ii) if the price were fixed at N1, what will be the excess demand?

"Contrast penalties vs. legalizing and taxing illegal drugs from the fairness perspective (refer to the two principles of fairness)". 

Suppose a certain city has a monopoly cable-television company. This company has total costs TC = 0.25Q² + 30Q + 70. (Hint: using calculus, this means MC = 0.5Q + 30 since MC is the derivative of TC with respect to output.) 

The demand in the community is approximated by the equation Q_d = 60 - P/2 (alternatively, you can write the demand equation as Q_d = 60 – 0.5P).

·       Graphically depict the demand curve as well as the marginal cost (MC) curve. 

·       If the cable company is free to choose its own price P_m and quantity Q_m, graphically depict the monopoly equilibrium price and quantity. Add any other curve(s) to your diagram that may be required to obtain this outcome.

·       Compute and state the exact monopolist equilibrium price P_m and quantity Q_m that you depicted graphically.

Contrast penalties vs. legalizing and taxing illegal drugs from the fairness perspective (refer to the two principles of fairness)".