Microeconomics Answers

If supply of art picture of ancient times decreases due to the shortage of artist 

in a shorter period of time what happened to art market if consumer has 

relatively elastic demand preferences for the art picture of ancient times but 

the supply is relatively inelastic. (support your answer with the help of 

graph).  Need answer urgent

Ketchup is a complement (as well as a condiment) for hot dogs.

If the price of hot dogs rises, what happens to the market?

For ketchup?

For tomatoes?

For tomato juice?

For orange juice?

 If TCC should convert from a two-year college to a four-year college, what would be a specific fixed cost in 

​this decision?   

Suppose Lauren, Leslie and Lydia all purchase small white board markers for their rooms at a certain price each. Lauren's willingness to pay was R350, Leslie's willingness to pay was R250, and Lydia's willingness to pay was R300. Total consumer surplus for these three was R450. What is the price of each white board marker? [1] R150. [2] R200. [3] R950. [4] R1350. 

 3. Suppose Lauren, Leslie and Lydia all purchase small white board markers for their rooms at a certain price each. Lauren's willingness to pay was R350, Leslie's willingness to pay was R250, and Lydia's willingness to pay was R300. Total consumer surplus for these three was R450. What is the price of each white board marker?  [1] R150. [2] R200. [3] R950. [4] R1350. 

 8. Max’s Christmas tree lot has a monopoly on sales of Christmas trees. To increase his sales from 100 trees to 108 trees, he must drop the price of all his trees from R28 to R26. What is Max’s marginal revenue when he lowers his price and increases his sales from 100 to 108 trees?  [1] R2,808 [2] R28 [3] R26 [4] R8 [5] R1 

 18. The market demand for the output of a monopolist is Q = 125 - 0.25P. The monopolist’s total cost equation is TC = 1,000 + 200Q +Q2. In this case: MC = 200+2Q. A revenue-maximizing monopolist would charge a price of:  [1] R350.00. [2] R275.50. [3] R380.00. [4] R475.00. 

Assume that the data in Table 1.1 will give rise to an indifference curve for Ahmad involving two goods A and B. Table 1.1 Units of A Units of B 16 6 12 8 8 12 4 24 a) Graph the indifference curve for Ahmad with A on the horizontal axis and B on the vertical axis. b) Assuming that the prices of A and B are Rs.1.5 and Rs.1 respectively and that Ahmad has Rs.24 to spend, add the resulting budget line to your graph. c) Given (a) and (b), what combination of A and B will maximize consumer satisfaction. Explain. d) Find the MRS between all consecutive points on the indifference curve. [Hint: recall MRS is the slope of the indifference curve and slope equals ΔY/ΔX. Here Y is commodity A and X is commodity B]

Suppose that Tata's Consultant estimated the following regression equation for Indica Automobiles:

Q1 = 100,000 - 100P1 +2000N +50I + 30 Pm -1000 Pp +3A +40,000 Pi

Q1 = Quantity demanded per year of Indica Automobiles

P1 = price of automobiles, in dollars

N = Population of India, im millions

I = Per Capita Disposable Income

Pm = Price of Maruti Automobiles

Pp = Real Price of petrol, in cents per gallon

A = adevertising expenditures by Indica, in dollars per year

Pi = credit incentives to purchase Indica, in percentage points below the rate of interest on borrowing in the absence of incentives

(a) Indicate the change in the number of Indicas purchased per year (Q1) for each unit change in the independent or explanatory variables

(b) Find the of Q1 if the average value of P1 = $ 9,000, N = 200 million, I = $ 10,000, Pm = $ 8,000, Pp = 80 cents, A = $ 200,000, and it Pi = 1

1. There are 3 bidders named Bidder 1, Bidder 2, and Bidder 3 with valuations equal to 30, 20 and 10 respectively in a second-price sealed-bid auction for a single object. Assume that valuations of bidders are common knowledge. Bids can be any non-negative real numbers and each bidder submits a sealed bid without knowing the bids submitted by others. The bidder who submits a bid higher than the bid submitted by the other two bidders gets the object at a price equal to the highest bid submitted by the other bidders and gets utility equal to her/his valuation minus the price paid. Other (unsuccessful) bidders don’t pay anything and each one of them gets a payoff of zero. Also assume that if more than one bidder submits the highest bid, the player with the highest valuation amongst those whose bids are the highest gets the object. Give necessary and sufficient conditions for a pure strategy profile to be Nash equilibrium in this game.