Microeconomics Answers

''in a straight line demand curve different points define different elasticities''-explain it with a diagram?

Imagine you've started a new pizza restaurant. It costs you about $5 to produce a pizza.

Last week you sold 500 pizzas for $10 each.

This week you raised your price and sold 150 pizzas for $16 each.

What price should you be charging?

Your grandfather tells you that earned $.50 per hour at his job when he was a boy in 1929.
a. Given the CPI was 17.1 in 1929 and 184.0 in 2003, how much would have to make in 2003 to have the same real hourly wages?
b. You made $5.50 an hour working during 2003. Were you better off than your grandfather in terms of purchasing power? Explain.
c. Your grandfather also tells you that a soda $.05 in 1929, and you know a soda cost $.55 in 2003. You decide to use the price of a soda as the price index. How much would the 2003 "soda equivalent" of $.50 per hour in 1929 be?

1. How do you think the pandemic has altered demand in Canada’s economy? (talk about how our wants as the consumers are reacting to the changes from the pandemic, what that means and how it affects the demand curve through shifts and movements)

2. As a result of the pandemic, the demand for certain goods has skyrocketed. To cope with such a shift, how have companies changed their ways of ‘efficient’ production. In doing so, has equity been at cost?

Suppose the equation of the line changes to P= -5×Q+70. Compute the quantity demanded at each indicated price.
Price: 50, Quantity:
Price: 40, Quantity:
Price: 30, Quantity:

The owner of an Italian restaurant has just been notified by her landlord that the monthly lease on the building in which the restaurant operates will increase by 20 percent at the beginning of the year. Her current prices are competitive with nearby restaurants of similar quality. However, she is now considering raising her prices by 20 percent to offset the increase in her monthly rent. Would you recommend that she raise prices?

A firm has a production function y = X1X2. If the minimum cost of production at w1 = w2 = 1 is equal to 4, what is y equal to?