Microeconomics Answers

Assume an individual’s preference for Fanta (Good x) and Fritters (Good y) are given by

the following utility function: U(x,y)=20= x^0.5y^0.5

REQUIRED:

i) Derive the equation for the indifference curve for this utility function

a) Think of a product produced in Belize (market price would be less than $50). Set up a demand and supply schedule of your own for that product.

b) Use the data in the demand and supply schedule to create a demand curve and a supply curve for the product. Please label the diagram completely.

c) Define “Equilibrium.” Explain what is the equilibrium price for your product and explain how you arrived at that equilibrium price.

1) Using the following table, prepare a diagram illustrating the demand and supply curves. Properly label the diagram and include the following:

i) demand and supply curves

ii) price and quantity axes

iii) equilibrium

iv) shortage

v) surplus

Table:

Quantity Demanded Price Quantity Supplied

10 $100 50

20 $80 40

30 $60 30

40 $40 20

50 $20 10

you have $500 to spend. Choose any TWO products you would purchase with that $500 (ensure that the price per unit of the items you decide to purchase be divisible by factors of $500).

a) Draw and label the budget line illustrating the two products/services and the budget line/budget constraint.

b) Create your own scenario and show what would happen to the budget line for those same items if the price of any one of the products/services would change (the price could either increase or decrease). Show the diagram and under, explain the scenario in your own words. 

c) Create another scenario and show what would happen to the budget line if the price of the other product/service would change (the price could either increase or decrease). Show the diagram explain the scenario in your own words. 

d) Draw a diagram to illustrate what would happen if your income would increase to $1000.

e) Draw a diagram to illustrate what would happen if the income would decrease to $250.

With reference to the market for roses, and given the scenario explained in the excerpt, further assume that when the market opened up, the demand for roses increased. Explain, with the aid of a graph, the overall impact of these changes on the equilibrium price and quantity of roses.

(Note: Five marks for the graph and five marks for the explanation)

Dear Sir/Ma'am,

Trust you are doing well.

Can you help me to slove below question please.

Your swift action would be highly appreciated.

Q. The demand for dog treats is represented by the following equation.

QD =300-50P Qs = - 100 + 150P

Determine equilibrium Quantity Demand, Quantity Supply and Price.

For the production function y = KαL β , where α, β ∈ (0, 1)

(a) Derive the marginal production of K and L. Show that it is decreasing.

Could you tell whether the good are necessities or luxury by point elasticity of demand?

Assignment 1

Q.1) Fresh Food has recently carried out a survey of the demand for their seasonal fruits. They observed the following

outcomes over the last seven months:

Quantity

Sold Price Advertising

8500 $ 2 $ 2,800

4700 $ 5 $ 200

5800 $ 3 $ 400

7400 $ 2 $ 500

6200 $ 5 $ 3,200

7300 $ 3 $ 1,800

5600 $ 4 $ 900

Regression (Equation)

QSold = 8536.213882 - 835.7223514 Price + 0.592228496 Advertising

A. Estimate sales when the price is $50 and advertising is $100,000, stating any assumption that you need to make.

B. If the firm charges $50 and cost per unit is $30 but increases advertising to $110,000, what conclusions can you derive

in terms of revenues and profits?

Mike is preparing for exams in economics and history. He has time to read 40 pages of economics and 30 pages of history. In the same amount of time he could also read 30 pages of economics and 60 pages of history. (a) Assuming that the number of pages per hour that he can read of either subject does not depend on how he allocates his time, how many pages of history could he read if he decided to spend all of his time on history and none on economics? (b) How many pages of economics could he read if she decided to spend all of his time reading economics?