Microeconomics Answers

Why is the opportunity cost so different from 0 to 500 bushels vs. 1400 to 1500

If one chocolate sells for rs. 20 you have already consumed 3 chocolates and utility derived from 3rd chocolate is 80 utils if 1re = 10 utils find the consumer reaction to reach equilibrium

Are graduation caps and gowns perfect compliments

List and explain some of the determinants of the price elasticity of demand. Is the price 

elasticity of supply usually larger in the short run or in the long run? Why?

 B. Explain why the following might be true: A drought around the world raises the total 

revenue that farmers receive from the sale of grain, but a drought only in Bihar reduces the total 

revenue that Bihar farmers receive.

Simsons inc. can sell 2800 pairs of boots per week if they charge $140 sales drop to 2750 pairs per week if they charge $150. Write a formula for demand function p=D(q)

 Use the price elasticity of supply concept and your own reasoning to judge

      whether the supply for each of the following products is either elastic or

      inelastic:

      (i)  Gold                                                                  

      (ii) Testing kits for Covid 19                                                                     

      (iii) Handphone                                                                         

      (iv) Moderna COVID 19 vaccine 

a) What output mix should a profit-maximazing firm produce when its total profit function is

𝜋 = 40𝑥 − 2𝑥 ଶ − 𝑥𝑦 − 3𝑦 ଶ + 100𝑦 and its maximum output capacity is 𝑥 + 𝑦 = 15 ?

b) Estimate the effect on profits if output capacity is expanded by 1 unit. 

what is the effect on tax revenue if the government increases the excise tax on a product that has an elastic demand?

If the demand for shoes increases at the same time as the shoe industry adopts labor-saving technology for making shoes, the equilibrium quantity for shoes will increase, but the effect on the equilibrium price of shoes is ambiguous.

True or false?

Espresso is an input for lattes. A decrease in the price of espresso will shift the supply curve for lattes to the right.

True or false