Microeconomics Answers

Use a graph to illustrate and explain the concept of consumer equilibrium for a consumer ,Johannes ,who consumers only two goods :Biltong(vertical axis)and beer (horizontal axis)

Suppose the following demand and supply function:

Q^d = 750 – 25P

Q^s = -300 + 20 P

       i.           Find equilibrium price and quantity

     ii.           Find consumer and producer surplus

If a consumers objective function is given by U=X₁^aX₂^b subject to P₁X₁ + P₂X₂ = m. Establish the levels of X₁ and X₂ that maximizes the consumers satisfaction.

Use the following functions that show quantity demanded and quantity supplied to answer the question

Qd=600 - 30P

Qs=-300 +120P

If the price is R8, then there will be a surplus of ______ units.

Use the following functions that show quantity demanded and quantity supplied to answer the questions

Qd=600 - 30P

Qs=-300 + 120P

What are the equilibrium quantity

If tge equation for a market demand curve is Qd=100-0,5P and the equation for a market supply curve is Qs=-20+P, the market equilibrium price is

A farmer has 50 hectares of land and 120 hours of labour. He can produce either maize or soyabeans. It takes an acre of land and 3 hours of labour to produce an acre of maize. A hectare of maize costs R154,00 to produce. It yields 7,5 tonnes per hectare, and as a consequence it generates a net profit of R56,00 per hectare. On the other hand, if a farmer produces soyabeans, it takes an acre of land and 2 hours of labour to produce an acre of soyabeans. It costs R133,00 to produce an acre of soyabeans An acre of soyabeans yields 30 tonnes and generates a profit of R47,00 per acre.

draw a budget line :

A B C D E F

x 0 4 8 12 16 20

y 10 8 6 4 2 0

What is demand

Two major sellers Suzuki and Honda rule Pakistan’s automobile market as the oligopolistic market. They jointly determine the price and output each firm would charge. However, if each firm constitutes its own self-interest they can maximizes their profit. Either of the company can produce one car, while the values in the matrix shows the profit for respective car. Use game theoryto answer the questions.

Honda

Suzuki

Accord

City

Alto

15,000

30,000

70,000

90,000

Celerio

50,000

35,000

102,000

83,000

a. Explain the game theory between Honda and Suzuki in the given context.​2 Marks

b. If Suzuki wants to assemble Alto and Honda assembles City, how much profit will Honda get?​​​​​​​​​​1 Mark