Microeconomics Answers

The market supply curves and market demand curves for books are given as follows:
Supply curve: P = 0.000002Q Demand curve: P = 11 – 0.00002Q
The short-run marginal cost curve: MC = 0.1 + 0.0009Q
The equilibrium price of books is …
1. R100
2. R1
3. R50
4. R5

The market supply curves and market demand curves for books are given as follows:
Supply curve: P = 0.000002Q Demand curve: P = 11 – 0.00002Q
The short-run marginal cost curve: MC = 0.1 + 0.0009Q
1. The equilibrium quantity of books is …
1. 500 000 books
2. 1 000 books
3. 1 book
4. 10 000 books

a. The utility function for a consumer utility is U=30Q1 1/2 Q2 1/2 .If the price per unit of Q1 is Ksh 10 and Ksh 5per unit of Q2, determine quantities Q1 and Q2 that the consumer should have to maximize utility if the consumer Ksh 350budgeted

An article in the Wall Street Journal described the production of cocoa beans used to make chocolate in African countries such as Ghana and Ivory Coast. The article explained that when prices of cocoa beans rise, it can take two to four years for new trees to produce the pods in which the beans are grown. If the demand for chocolate were to increase, all else equal, would you expect the price of chocolate to be greater after one year or after four years? Use a graph to illustrate your answer.

Why all types of economic system benefit from the existence and the use of money?

with regards to the coal shortages and municipal debts, what forms of interventions do you think eskom can put in place in order to cover up for all the debts and continue operating

From the data shown below in the table about supply of alarm clocks, calculate the price elasticity from different points. Classify the elasticity of each point as elastic, inelastic and unit elastic.
Point Price Quantity Supplied Elasticity
A $8 50
B 9 70
C 10 80
D 11 88
C 12 95
E 13 100

With the aid of well-labeled supply-demand diagrams, explain how the equilibrium price and quantity of notebook computers will be affected if
a) new suppliers enter the market
b) it is discovered that frequent use of computer is bad for health
c) the government requires that 25% of lessons taught in each school have to be conducted with information technology; and
d) earthquake occurs in a major notebook computer producing region

the market demand and supply function for milk are: Qd= 58-30.4P and Qs = 16+ 3.2P. If a price floor of $1.75 is implemented, calculate the change in producer surplus. How many surplus units of milk are being produced? If the government purchases all the excess units at $1.75, calculate the milk expenditure by government? Does the increase in producer surplus due to the price floor exceed government spending on excess milk?

If the UPM's price equation is: 120-2Q; the UPM's marginal revenue is: 120-4Q; the UPM's total cost is: 3Q^2 +5Q+132; and the UPM's marginal cost is: 6Q +5.
A. Solve for the profit-maximizing (or loss minimizing) quantity (Q*).
B. Solve for the profit-maximizing (or loss minimizing) price (P*).
C. should the uniform pricing monopolist produce Q*? Explain why using one of the four key questions and solutions
D. Does the uniform pricing monopolist make profit? Explain why using one of the four key questions and solutions
E. How much profit (or loss) does the uniform pricing monopolist make?