Microeconomics Answers

Calculate the consumer surplus for the demand function P = 25/Q+2 when the market price P = 5.

1.       The model Y_i=a +b₁X_1i +b₂X_2i +b₃X_3i +U_iis to be estimated from a sample of 20 observations. Using the information below obtain the OLS estimate of the parameters of the above model.

 (x/x)^-1 _{=0.1, -0.12, -0.03 ( -0.12 -0.03, 0.04 0.02, 0.02 0.08) xy=(10,000, 20,300, 10100, 30200)}

∑_{X1 =400,} ∑_{X2= 200 and} ∑_{X3= 600}

Where x=x_{i -} x_{i, and} y₌ y_i-y_i

In equilibrium a consumer was buying 5 units of good A and some of good B. His

income was Rs 100 and the prices were P A = Rs 8 and P B = Rs 5. The price of good A

falls to Rs 5. By how much does his income need to be compensated so that he is able to

buy the (old) bundle at the original equilibrium?

determinants of demand leads to a movement along the demand curve or a shift in the demand curve.

determinants of supply leads to a movement along the supply curve or a shift in the supply curve.

What effect will each of the following have on the demand for small automobiles such as the Mini-Cooper and Fiat 500?

When will a monopolist discontinue production?