Microeconomics Answers

A market consists of two individuals. Their demand equation are 

Q1 = 16 - 4P and Q2 = 20 – 2P, respectively. 

= a) What is the market demand equation?

b) At a price of $2, what is the point price elasticity for each person

The price of oil is $30 per barrel and the price elasticity is constant and equal to-0.5. An oil embargo reduces the quantity available by 20 percent. Use the arc elasticity formula to calculate the percentage increase in the price of oil.

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) Is rice an inferior good, a necessity, or a luary? Explain 

(b) If per capita income increases to $20,500, what will be the quantity demanded of rice?

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

2. There are two nations: WallStreetBets and MuskMoonStonks. They produce two goods: silver and Melvin Capital tears. In a single year, WallStreetBets can make 4,000 tons of silver, or 26,000 tons of Melvin tears. In the same period of time, MuskMoonStonks can make 16,000 tons of silver, or 20,000 tons of Melvin tears. In the following questions, be sure to explain your reasoning. (a) Which country has absolute advantage in silver? (3%) (b) Which country has absolute advantage in Melvin tears? (3%) (c) Which country has comparative advantage in silver? (3%) (d) Which country has comparative advantage in Melvin tears? (3%) (e) Suppose that neither country is involved in international trade. In a single year, WallStreetBets makes 2,000 tons of silver and 13,000 tons of tears. In the same period of time, MuskMoonStonks makes 16,000 tons of silver and zero Melvin tears. Depict these allocations on two separate PPFs, one for each nation. (8%) (f) Suppose that the nations now decide to trade. WallStreetBets gives 1,000 tons of Melvin tears to MuskMoonStonks in exchange for 1,000 tons of silver. Is this a 1 beneficial trade for both nations? (10%)

ONLY NEED HELP WITH E AND F

Can you please help with these as well the links are also the photos.

https://ibb.co/859Mpz7

https://ibb.co/FWg7kKd

https://ibb.co/vLs7D9y

https://ibb.co/VHDcJ4L

https://pastpapers.co/cie/view.php?id=/cie/IGCSE/Economics-0455/2016/2016%20Jun/0455_s16_qp_12.pdf

question number 7

 Suppose that the residents of Mexico spend all their income on cauliflower, broccoli, and carrots. In 2017 they buy 110 heads of cauliflower for $220, 80 bunches of broccoli for $100, and 200 carrots for $50. In 2018, they by 50 heads of cauliflower for $200, 50 bunches of broccoli for $110, and 250 carrots for $100. Assume the base year is 2017.

1. a) What is the CPI in both years? Hints: show steps. (10 marks)
2. b) What is the inflation rate in 2018? Hints: show steps. (5 marks) 

the inquiry club at jefferson university has compiled a book that exposes the private lives of many of the professors on campus. Economics majors in the club estimate that total revenue from sales of the books is given by the equation TR =120Q -0.1Q3

a. over what output range is demand elastic

Hey can anyone help me wirh these please, the links are for the photos

https://ibb.co/R0J6N9T

https://ibb.co/hxGr6hG

https://ibb.co/ThwgXZw

https://ibb.co/5k977mM

marginal cost is 20 and the price elasticity of demand is -2.0 determine profit maximizing price