Microeconomics Answers

Due to substantial increases in prices in Country A, the real income level of the population in Country A decreases. Show on a diagram how the decrease in the income level in Country A will affect the demand for meat, which is a normal good. Also indicate how the equilibrium price and equilibrium quantity of meat will change in Country A. The direction of any changes should be clearly indicated using arrows. Note that your diagrams should be properly annotated and that marks will be deducted for any missing labels on your diagram.

Due to substatial increases in prices in country A, the al income level of the population in country A decreases. Show a diagram how decrease in the income level in country A will affect the demand for meat which is a normal good. Also indicate how the equilibrium quantity of meat will change in country A. The direction of any change should be indicated using arrows

Acme Tobacco is currently selling 5,000 pounds of pipe tobacco per year. Due to competitive pressures, the average price of a pipe declines from $15 to $12. As a result , the demand for Acme pipe tobacco increases to 6,000 pounds per year.

a) Assuming that the cross elasticity does not change, at what price of pipes would the demand for pipe tobacco be 3,000 pounds per year? Use $15 as the initial price of a pipe

Explain how economies of scale can be a barrier to entry.

Your initial post should be 3-4 paragraphs in length. Make sure to demonstrate critical thinking and analysis by using research. For full credit, include one journal article to support your post.

If wages fall, then:

A. According to the income effect, the worker’s demand for leisure will increase.

B. According to the substitution effect, the worker’s demand for leisure will decrease.

C. According to the substitution effect, the workers will substitute leisure time for

working.

D. The income and substitution effects will work in the same direction.

E. The opportunity cost of not working increases.

The price elasticity for rice is estimated to be -0.4 and the income elasticity is 0.8. At a price of $0.40 per pound and a per capita income of $20,000, the demand for rice is 50 million tons per year.

a) if the price of rice increases to $0.41 per pound and income per capita remains at $20,000, what will be the quantity demanded?

1.    Do you know the assumptions which underlay the consumer’s preferences? Explain them.

Given the following information on price of Maize flour (MF) 10$, the price of Rice (R) as 15$ and income of consumer 150$ when the consumer needs to maximize his utility function  

Analyze the following graph on consumer behavior, through

Explaining the line/curve A and C

Given the following demand equation P = 60- 2Q and the cost equation TC(q) = 100+3Q2

For the market of shoes

a. If the enterprises in this market take advantages of perfectly competitive market, find the equilibrium outputs and price.

b. If the seller in this market takes the advantages of pure monopoly, find the equilibrium outputs and price.

c. If the seller in this market takes the advantages of oligopolistic market, find the equilibrium outputs and price.

You are thinking about setting up a lemonade

stand. The stand itself costs $200. The ingredients

for each cup of lemonade cost $0.50.

a. What is your fixed cost of doing business?

What is your variable cost per cup?

b. Construct a table showing your total cost,

average total cost, and marginal cost for output

levels varying from 0 to 10 gallons. (Hint:

There are 16 cups in a gallon.) Draw the three

cost curves.

University authority has assigned you to build a model to analyze the total number of books that the

students of university want to buy from the university Bookshop. Discuss how vou are going to build a model in this

case. Discuss how we can use and apply the model you have just built.