Learn more about our help with Assignments: Microeconomics
Search & Filtering
Microeconomics
In past 50 years the frozen food industry in U.S has grown from $1billion to $27 billion. Discuss the role of opportunity cost in our lives with regards to this huge growth in the frozen food market in the U.S
Microeconomics
Inayah needs Rs.100, 000 to start an ice-cream business. If she uses Rs.40, 000 from her savings and another Rs.60, 000 borrows from the bank. The interest rate is 5% in the market. Find the opportunity cost that Inayah has to bear in order to start a business?
Microeconomics
In a world of two goods X and Y, the government is considering two different
schemes to help the poor to buy more X, but at the same time, makes them equally
better off. The price of good Y is 1.
Scheme 1. Offer them a subsidy of s per unit.
Scheme 2. The government will give an amount of money equivalent to the Equivalent
Variation(EV) to the poor.
Which scheme will cost the government less money?
schemes to help the poor to buy more X, but at the same time, makes them equally
better off. The price of good Y is 1.
Scheme 1. Offer them a subsidy of s per unit.
Scheme 2. The government will give an amount of money equivalent to the Equivalent
Variation(EV) to the poor.
Which scheme will cost the government less money?
Microeconomics
Q1. John derives utility from consuming good X and Y.
His utility function is given by U(X,Y) = LnX + 10Y.
The price of good Y is 1 and the price of good X is Px and his income is M.
(a) Derive John’s demand for X and Y.
(b) Suppose the price of X fell from $2 to $1, calculate the substitution effect and
income effect for the change in X.
Need help in part b
His utility function is given by U(X,Y) = LnX + 10Y.
The price of good Y is 1 and the price of good X is Px and his income is M.
(a) Derive John’s demand for X and Y.
(b) Suppose the price of X fell from $2 to $1, calculate the substitution effect and
income effect for the change in X.
Need help in part b
Microeconomics
A consumer with income M, derives utility from consuming good X and Y.
He has a Cobb-Douglas utility function, U(X,Y) = X^1/2 Y^1/2
The prices of good X and Y are Px and Py respectively.
a) Derive his demand functions for X and Y.
b) Derive the price elasticity of demand for X.
c) Is X a normal good?
Need help in part b
He has a Cobb-Douglas utility function, U(X,Y) = X^1/2 Y^1/2
The prices of good X and Y are Px and Py respectively.
a) Derive his demand functions for X and Y.
b) Derive the price elasticity of demand for X.
c) Is X a normal good?
Need help in part b
Microeconomics
when a good is said to have elastic demand, what is true of the good when the price of the good increases
Microeconomics
u(x1, x2) = (x1^p + x2^p)^1/ρ
1. Check the Slutsky equation in its four components.
2. What is different with respect to the case of a Cobb-Douglass utility?
3. Show that in the limit ρ → 0 the CES utility converges to a
Cob-Douglass utility
1. Check the Slutsky equation in its four components.
2. What is different with respect to the case of a Cobb-Douglass utility?
3. Show that in the limit ρ → 0 the CES utility converges to a
Cob-Douglass utility
Microeconomics
b) A news website reported (Feb. 17, 2020) that ridership of Karachi Metro Bus declined after a fare increase: “There were nearly four million fewer riders in December 2019, the first full month after the price of a token increased Rs. 25 to Rs.150, than in the previous December, a 4.3 percent decline.”
i. Use these data to estimate the price elasticity of demand for Karachi Metro Bus. (2 Marks)
ii. According to your estimate, what happens to the Karachi Metro Bus’s revenue when the fare rises? (0.5 Marks)
iii. Why might your estimate of the elasticity be unreliable?
i. Use these data to estimate the price elasticity of demand for Karachi Metro Bus. (2 Marks)
ii. According to your estimate, what happens to the Karachi Metro Bus’s revenue when the fare rises? (0.5 Marks)
iii. Why might your estimate of the elasticity be unreliable?
Microeconomics
The number of cinema tickets in Karachi and the ticket fares are regulated. The fare currently charged is Rs.500 a ticket. The Cinema Association want to obtain government's permission to raise the fare to increase their revenues and ask you to be their economic adviser. After studying the market, you come up with the following demand schedule for cinema tickets:
Price (Rupees per ticket) Quantity demanded (tickets per month)
300 160
400 120
500 80
600 40
700 0
a) Calculate the price elasticity of demand for cinema tickets as the fare rises from Rs.500 to Rs.600. Is the demand price elastic or inelastic for this fare rise?
Microeconomics
What effect will each of the following have on the demand for small automobiles such as the Mini-Cooper and Fiat 500?
A. Small automobiles become more fashionable.
B. The price of large automobiles rises (with the price of other small autos remaining the same.)
C. Income declines and small autos are an inferior good.
D. Consumers anticipate the price of small auto will greatly come down in the future.
A. Small automobiles become more fashionable.
B. The price of large automobiles rises (with the price of other small autos remaining the same.)
C. Income declines and small autos are an inferior good.
D. Consumers anticipate the price of small auto will greatly come down in the future.
Finding a professional expert in "partial differential equations" in the advanced level is difficult.
You can find this expert in "Assignmentexpert.com" with confidence.
Exceptional experts! I appreciate your help. God bless you!
#340153 on Dec 2023
#340153 on Dec 2023