Microeconomics Answers

An increase in income would lead to...

The demand function for product X is: Qd = 600 – 20Px + 0.02Y – 5Pr The supply function is: Qs = –300 + 10Px
Where:
Qd = the quantity of X demanded Qs = the quantity of X supplied Px = the price of product X Y = the average consumer income Pr = the price of the related product R

What is the equilibrium price an quantity

The demand and supply schedules for potato chips are :

Price(rand per bag) QD Qs

5 160 130
6 150 140
7 140 150
8 130 160
9 120 170
10 110 180

a. Draw a graph of the potato chip market and mark in the equilibrium price and quantity.

Qd=600-20px+0.02y-5pr
Qs=-300+10px

What are the equilibrium price and quantity?

You are still the CEO of Metrorail . Analysts have determined that the price elasticity of 1,4 is a weighted average figure. During peak hours in the morning and evening the price elasticity of demand is 0,8 and during the rest of the day it is 2,6.How would this information affect your pricing strategy ?

The demand for ice cream cones is P=1600 AND Qd is 2
The supply of ice cream cones is P=400 and Qs is 1. The price of a cone is expected in cents , and the quantities are expressed in cones per day. To find the Equilibrium price (P*) and the equilibrium quantity (Q*), substitute Q* for QD and QS and P* for P.
(For QD, P=a-bQd and for QS, P=c+dQs)

9. Are the following statements true or false? Explain in each case.
a. “Two countries can achieve gains from trade even if one of the countries has an absolute advantage in the production of all goods.”
b. “Certain very talented people have a comparative advantage in everything they do.”
c. “If a certain trade is good for one person, it can’t be good for the other one.”
d. “If a certain trade is good for one person, it is always good for the other one.”
e. “If trade is good for a country, it must be good for everyone in the country.”

1.what are the equilibrium price and quantity?
2. If Y = 35000 and Pr=20. Draw the precise demand curve for product x
3. What are the equilibrium price and quantity if other aspects remain the same, the income and the price of the related product are at their original levels and the supply curve shifts to Qs=-360+10Px?

to what extent are oligopolistic market structure undesirable in relation to economic efficiency?
(2 reasons for why its undesirable, and 2 reasons for why its desirable)

Being a student of Professor Hayes’ Econ course, you suggest that using tradeable permits can achieve the same goal at a lower cost. How many permits should be issued to each firm to reduce pollution by 60 tons?