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1.The demand for some goods is set by formula Qd = 200-10Р, the supply is presented by the formula Qs = 60+15P 1) Compute the equilibrium price and quantity of goods at this market; 2) If a market price is fixed as Р = 10rub., calculate the demand and supply amount.
Suppose M = 8, P1 = 4, P2 = 2. Graph the budget set for this consumer.
b) Define the opportunity cost of good 1 in terms of good 2.
c) Determine the opportunity cost of good 1 at the point where 21 = 1.
d) Does the opportunity cost of 1 change as we move along the budget line? Explain.
e) Now suppose that M = 16, P1 = 2, P2 = 4. Graph the consumer's budget set in this case
f) Can we rank these budget sets in terms of which is better for the consumer? Explain.
Given two goods named Omega & Alpha, with Omega along the vertical axis, and Alpha on the
horizontal. Assume that the budget is constant at 100 pesos, the price of good Omega is fixed at 5
pesos. The Price of Alpha changes from 1 peso to 2 pesos. What is the MRS at the old price of
Alpha?
Give your answer in NUMERICAL Form only, no need for any word.
horizontal. Assume that the budget is constant at 100 pesos, the price of good Omega is fixed at 5
pesos. The Price of Alpha changes from 1 peso to 2 pesos. What is the MRS after the price
increase in Alpha?
The sign will matter, give only in numerical form, no need for any word, give your answer in the
decimal form when applicable.
horizontal. Assume that the budget is constant at 100 pesos, the price of good Omega is fixed at 5
pesos. If the Price of Alpha changes from 1 peso to 2 pesos, how many units of Omega can be
bought in combination with 50 pieces of Alpha at its initial price ?
the market for sweatshirts.
a. A hurricane in South Carolina damages the cotton crop.
b. The price of leather jackets falls.
c. All colleges require morning calisthenics in appropriate attire.
d. New knitting machines are invented
Suppose you have an income of $24 and the only two goods you consume are apples (x1) and peaches (x2). The price of apples is $4 and the price of peaches is $3.
Suppose that your optimal consumption is 4 peaches and 3 apples.
a. Illustrate this in a graph using indifference curves and budget lines.
b. Now suppose that the price of apples falls to $2 and I take enough money away from you to make you as happy as you were originally. Will you buy more or fewer peaches? Provide a graphical representation.
1.Identify the market structure of Domestic Airlines in Australia. Explain how you reached your decision using economic theory and facts.
2a Compare and contrast the own price elasticity of demand of business travellers as opposed to domestic leisure travellers. Give one relevant example to demonstrate your understanding.
2b Briefly discuss the cross-price elasticity of demand between Qantas and Virgin Australia. Give one relevant example to demonstrate your understanding.
2c How did demand for and supply of Domestic Airlines in Australia change in the past 5 years? In your answer, you should briefly discuss two relevant conditions (determinants) of demand and two relevant conditions (determinants) of supply in this market.
2d Illustrate the changes in 2.3 above in a demand and supply diagram showing clearly the impact on the equilibrium price and quantity.
