Microeconomics Answers

Microeconomics

Solve the following problems on Cross elasticity of demand and classify the nature of relationship between the two goods. 6)A consumer had purchased 2 kg. of Society tea powder (Good X) when the price of Wagh bakri tea powder (Good Y) was Rs.400/- per kg. Later on the price of Wagh bakri tea rises to Rs. 430/- per kg. As a result the consumers demand for Society tea powder rises to Rs.4 kg. 7) A consumer had purchased 12 numbers of ball pen (Good X) when the price of Classmate brand Note book (Good Y) was Rs.100 /- each. Later on the price of Classmate brand note book rises to Rs.130/- each, as a result the consumers demand for ball pen falls to 6 units.

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Question #256434

Microeconomics

Solve the following problems on Income elasticity of demand and classify the nature of elasticity and good. 3)Suppose the initial income of a consumer is Rs.2000/- per week and he purchases 20 units of a commodity. In the next month the income of the consumer rises to Rs.3000/- per week, as a result the demand rises to 40 units. 4) Suppose the initial income of a consumer is Rs.2000/- per week and he purchases 20 units of a commodity. In the next month the income of the consumer rises to Rs.3000/- per week, as a result the demand rises to 25 units. 5) Suppose the initial income of a consumer is Rs.2000/- per week and he purchases 20 units of a commodity. In the next month the income of the consumer rises to Rs.3000/- per week, as a result the demand falls to 10 units.

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Question #256426

Microeconomics

Solve the following problems on Price elasticity of demand and classify the nature of

elasticity and good.

1) The demand for a CDs is 1000 units and the price is Rs. 20/- per CD. Later on the price rises

to Rs.22/- per CD as result the demand falls to 870 units.

2) The demand for a commodity is 80 units and the price is Rs. 14 /- per unit. In the next month,

the price falls to Rs.10/- per unit and the demand rises to 88 units.

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Question #256386

Microeconomics

Q.) Assume a consumer has $40 to spend and for both products the marginal utilities are shown in the following table: Quantity. MU A. MU B 1. 35 80 2. 20 40 3. 12 18 Assume that each product sells for $10 per unit. A.) How many units of each product will the consumer purchase? B.) Assume the price of product B rises to $20 per unit. How will this consumer allocate her budget now? C.) If the price of both products rise to $20 per unit , what will be the budget allocation?

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Question #256384

Microeconomics

Let Marginal utility of A (MUA)=2z-20-2x and Marginal utility of B (MUB)=2z=42-y. where z is marginal utility per Naira measured in utils, x is the amount spent on product A. and y is the amount spent on product B. Assume that the consumer has N10 to spend on A and B-that is, x+y= 10. i. How is the benefit of N10 maximized between A and B? ii. How much utility will the marginal Naira yield?

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Question #256224

Microeconomics

A monopoly that faces a demand curve given by q= 1-P and has a constant marginal cost is 0.1 In this situation the monopoly’s profit maximizing output level is

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Question #256196

Microeconomics

Work based assignment (WBA): try to collect 10 to 20 years sales details of a company forecast their demand for the next year and find out the demand for the same after 5 years from now. Fit the linear equation and draw the trend line. And suggest short term and long term decisions to be taken in the organization to meet the future demand.

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Question #256181

Microeconomics

Try to collect 10 to 20 years sales details of a company and forecast their demand for the next year and find out the demand for the same after 5 years from now. Fit the linear equation and draw the trend line. And suggest short term and long term decisions to be taken in the organization to meet the future demand.

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Question #256175

Microeconomics

Historically, when has the Federal government been most likely to run budget deficits? What has been the recent experience?

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Question #256172

Microeconomics

4. The supply and demand for broccoli are described by the following equations: Supply: QS = 4P – 80 Demand: QD = 100 – 2P Q is in tonnes, and P is in dollars per bushel. /6 a. What is the equilibrium price and quantity? b. Calculate consumer surplus, producer surplus, and total surplus at the equilibrium. c. If a dictator who hated broccoli were to ban the vegetable, who would bear the larger burden—the buyers or sellers of broccoli?

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