Microeconomics Answers

Could you assist with the following?

Suppose that the price of whiskey increases from R100 to R150 a bottle and as a result the Qd decreases from 1 100 bottles to 800 bottles.  

5.1. Use the ARC (midpoint) formula to calculate the price elasticity of demand for whiskey. 

5.2. Use the income elasticity of demand to distinguish between a normal good and an inferior good. In your explanation, provide the correct elasticity coefficient for each product and the relationship between income and quantity demanded. 

8.Perfect competition occurs when none of the individual market participants (buyers and sellers) can influence the price of the product. Under perfect competition, marginal revenue and average revenue are thus both equal to the market price. The situation in which a firm makes an economic profit is identified as one of the possible short-run positions of a firm under perfect competition. Illustrate the given short-run position and explain the situation with reference to your graph. 

Given utility maximization problem U=Q1Q2 subject to 1OQ1 +2Q2=240

a. Derive the lagrange function.

b. Derive the first order condition.

c. Using cramer's rule to find the critical value of q1q2 and lamda

It is a hot day, and Ovi is thirsty. Here is the value he places on each bottle of water:

Meanwhile, Emon owns a water pump. Because pumping large amounts of water is

harder than pumping small amounts, the cost of producing a bottle of water rises as

he pumps more. Here is the cost he incurs to produce each bottle of water:

Consider a market in which Ovi is the buyer and Emon is the seller.

a. Use Emon’s supply schedule and Ovi’s demand schedule to find the quantity

supplied and quantity demanded at prices of $2, $4, and $6. Which of these prices

brings supply and demand into equilibrium?

b. What are consumer surplus, producer surplus, and total surplus in this

equilibrium?

c. If Emon produced and Ovi consumed one fewer bottle of water, what would

happen to total surplus?

d. If Emon produced and Ovi consumed one additional bottle of water, what would

happen to total surplus?

Consider the following demand 

Q=6000−3P

Find the maximum total revenue that the producer can get.

If bananas cost $1 per pound and apples cost $2 per bag, what is Sam's marginal utility per dollar for all quantities of both goods

What economics is all about?

Are externalities resources that can be used to solve the scarcity problem?

If D=MB(Q) is P=100-5Q,S=MC(Q) is P=20+10Q.

(1)calculate Pe and Qe

(2)If Tax=20 On Seller, what is Cs Ps GS and DL.

(3)About GS,seller and Buyer which side take more Tax Burden

Please Draw graphs and answer.

The own price elasticity of the market demand for cigarette is -0.4% if the price falls by 5%, by what percentage will be quantity?