Microeconomics Answers

1.     Rahul purchases only 2 goods: ice cream and chocolates. If own price elasticity of demand for chocolates is 1, what is the cross price elasticity of demand for ice-cream. Show your calculation/reasoning.

If we observe more rice is purchased this year than last year, we may conclude that demand has increased and therefore price must have increased. Comment

Why should decision makers set MB equal to MC?

Draw the indifference curve fir someone is deciding to allocate time between work and leisure. What will be the shape of labour supply curve?

Draw the indifference curve for someone is deciding to alloacate time between work and leisure.what will be the shape of labour supply curve?

Suppose the market for watermelon can be described as the graph below . If Jon is willing to pay 8 dollars

How do interest rates affect household savings

explain the price elasticity of demand curve and state its relationship to a firms total revenue and relationship to the customers total expenditure

If a quantity demand Q=50-p, how much will be a price at a minimum production?

Problem 1:

Describe the properties of a binomial distribution.

Problem 2:

Consider a binomial problem with number of trials n = 8 and probability of success P = 0.3. Find the following probabilities:

1. P(x ≤
2.  5) 
3. P(x < 5)
4. P(x ≥
5.  6) 

Problem 3:

40% of student assessments from a large course are marked by lecturer A, and the rest by lecturer B. A group of five students from this course shares a flat. Find the probability:

1. that all have their work marked by lecturer B.
2. that at least one has work marked by lecturer A.
3. that exactly one has work marked by lecturer A.

Please show working out.