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What is the demand of the milk per week suppose that the price of milk falls 22 pioneer what is the demand at his new price of milk per week what is the total change in demand in a week
Calculate the substitution effect and income effect after this change in price
C(y)=10y2+100 what is the supply curve
Q=2k2-30L+200
Calculate the marginal product of labour calculate the marginal product of capital calculate the marginal rate of technical substitution
Listen aided example of Edgeworth box illustrate how to prove the Pareto efficiency general equilibrium is achieved
and
When there is excess demand, price adjusts according to the equation
a) Find the long run equilibrium price, P* (that is, the price at which there is no excess demand or supply).
b) Formulate and solve he first order differential equation giving P as a function of time, t. Is this market dynamically stable or unstable?
c) If the initial price is P = 50, how close will the price be to its long run equilibrium value, when t = 10?
□ Exercise: Suppose the demand curve is linear and is given by the equation P = a – bQ where P is price and Q is quantity. What is the consumer surplus if the equilibrium price is P* and equilibrium quantity is Q*?
Q7:- A firm increased the price of its product by 5.0 per cent and observed that its revenue increased by 3.0 per cent. Enthused by this fact, it again raised price by another 5.0 per cent. This time revenue fell by 8.0 per cent.How can one use the concept of elasticity to explain this be explained?
Q4:- Suppose for a commodity X, demand and supply curves are given by the equations
(1) Qd = 4 - P
(2) Qs = -2+P
(a) What are the price elasticities of the demand curve and the supply curves at the points P = 1, 2, 3, etc.?
(b) Suppose for commodity X, the price elasticity of demand is constant throughout the curve. What can you say about the functional form of the demand curve?
Question 1: A producer has a production function Q= 5K0.7 L0.5 and buys K at $12 a unit and L at $9 a unit. What input combination will minimize the cost of producing 190 units of output, and hence determine the Total Cost?
Question 2: A firm has a budget of $350 to spend on the three inputs X, Y, and Z whose prices per unit are $4, $2 and $5 respectively. What combination of X, Y and Z should it employ to maximize output if it faces the production function Q= 24X0.3Y0.2Z0.3
Also calculate the maximum output of the firm.
