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Suppose that we have elicited the indifference relation ∼ and the strict preference relation > from a decision-maker. Define the weak preference relation >
given relations ∼ and >. That is, reconstruct the decision-maker’s weak preference statements from the decision-makers indifference and strict preference
statements
A pen shop sells pen for 8php each and sold 250 pens per day on average. They estimate that the price elasticity of demand for pen is (-) 1.6. Calculate the expected number of customers if they reduce the pen price to 7php each.
Ketchup is a complement for hot dogs . If the price of hotdogs rises what happens to the demand for ketchup? For tomatoes ? For tomato juice ? For orange juice ?
Suppose that the short-run world demand and supply elasticities for crude oil are -0.076 and 0.088, respectively. The current price per barrel is $30 and the short-run equilibrium quantity is 23.84 billion barrels per year. Derive the linear demand and supply equations. Also verify your answer
1 Make up an example of a monthly demand schedule for burgers and
graph the implied demand curve.
Give an example of something that would shift
this demand curve, and briefly explain your reasoning.
Would a change in the price
of burger shift this demand curve?
QUE: Identify a set of concepts in Managerial Economics that you found most interesting and useful. Show why these sets of concepts impressed you with a case study
NOTE: Your case study has to identify WHY you liked the set of concepts; AND then compare it with other related concepts.
Identify a set of concepts in Managerial Economics that you found most interesting and useful. Show why these sets of concepts impressed you with a case study?
NOTE: Your case study has to identify WHY you liked the set of concepts; AND then compare it with other related concepts.
Given the national income model Y=C+I+G. C=400+0.72Y; I=100 and G=90
a. b. c. d. e.
8. a. b.
Obtain the equilibrium level of output
What is the size of multiplier?
By how much will output increase when investment spending increases by 50%? Graphically demonstrate your answer in 7 (a)
How will your answers in 7 (a)–(d) change if the consumption function is now given as C = 400 + 0.72Yd where Yd = Y – T and the tax function is given as T = 40 + 0.15Y?
Assume an individual’s preference for Fanta (Good x) and Fritters (Good y) are given by
the following utility function: U(x,y)=130= 3𝑥2 + 3𝑥𝑦 + 9𝑦
REQUIRED:
i) Derive the equation for the indifference curve for this utility function
