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Microeconomics
Consider the market for minivans. For each of the events listed below, identify which of the determinants of demand or supply are affected. Also indicate whether demand or supply is increased or decreased. Then show the effect on the price and quantity of minivans. (7.5 marks)
i. People decide to have more children.
ii. A strike by steelworkers raises steel prices.
iii. Engineers develop new automated machinery for the production of minivans.
iv. The price of SUVs rises.
v. A stock market crash lowers people’s wealth
i. People decide to have more children.
ii. A strike by steelworkers raises steel prices.
iii. Engineers develop new automated machinery for the production of minivans.
iv. The price of SUVs rises.
v. A stock market crash lowers people’s wealth
Microeconomics
Pham can work as many or as few hours as she wants at the college bookstore for $11 per hour. But due to her hectic schedule, she has just 17 hours per week that she can spend working at either the bookstore or at other potential jobs. One potential job, at a café, will pay her $12 per hour for up to 6 hours per week. She has another job offer at a garage that will pay her $10 an hour for up to 5 hours per week. And she has a potential job at a daycare center that will pay her $8.50 per hour for as many hours as she can work.
If her goal is to maximize the amount of money she can make each week, how many hours will she work at the bookstore?
hour(s).
If her goal is to maximize the amount of money she can make each week, how many hours will she work at the bookstore?
hour(s).
Microeconomics
Qx=40-2y+2w-3x+80 I where x, y and w are commodities; Qx is quantity demand of good commodity x and I is income.
(a). What is the relationship between commodity x, y and w? (show your illustrations)
(a). What is the relationship between commodity x, y and w? (show your illustrations)
Microeconomics
discuss whether government should subsidise food prices
Microeconomics
Suppose that businesses buy a total of $100 billion of the four resources (labor, land, capital, and entrepreneurial ability) from households. If households receive $60 billion in wages, $10 billion in rent, and $20 billion in interest, how much are households paid for providing entrepreneurial ability?
Microeconomics
A grocery shop sells milk packets (containing 1/2 a litre of milk) as well. It makes bulk purchase of the same from the nearby city. Every time a purchase is made, it incurs a cost of Rs.50 towards transportation. The daily demand of packets is about 250. Holding cost is Rs.0.10 for a packet a day to preserve it in a refrigerator. Determine the optimum quantity of a bulk purchase and the cycle time.
Microeconomics
1. Inventory change=last period's ending inventory- the current period's ending inventory.
2. Change in inventory= production of the firm during the year- sale of the firm during the year
No doubt in (1) but in (2) "production of the firm during the year- sale of the firm during the year" tells about remaining part which is unsold. How could we say unsold product is "change in inventory"?
Numerical example to this?
Gross value added (GVA) = Value of sales by the firm + Value of change in inventories – Value of intermediate goods used by the firm.
2. Change in inventory= production of the firm during the year- sale of the firm during the year
No doubt in (1) but in (2) "production of the firm during the year- sale of the firm during the year" tells about remaining part which is unsold. How could we say unsold product is "change in inventory"?
Numerical example to this?
Gross value added (GVA) = Value of sales by the firm + Value of change in inventories – Value of intermediate goods used by the firm.
Microeconomics
Usually when people buy or use more quantity of a given product, they expect the price per item to reduce or stay the same.
E.g.: I buy a Gold bar today, the rate is USD $13,510. If I buy 5 gold bars it would be $13,510 x 5 = $67,550
Can you think of one example where this price-volume rule is not obeyed? i.e. the more you buy, the price per item gets higher? (Note: don’t answer with gold, silver, other precious metals etc.). In the above example, it would mean that 1 gold bar costs USD $13,510 but 5 gold cars would costs more than $67,550. Please explain what factors would cause the price-volume rule to not be obeyed.
E.g.: I buy a Gold bar today, the rate is USD $13,510. If I buy 5 gold bars it would be $13,510 x 5 = $67,550
Can you think of one example where this price-volume rule is not obeyed? i.e. the more you buy, the price per item gets higher? (Note: don’t answer with gold, silver, other precious metals etc.). In the above example, it would mean that 1 gold bar costs USD $13,510 but 5 gold cars would costs more than $67,550. Please explain what factors would cause the price-volume rule to not be obeyed.
Microeconomics
5. For the following situations, identify the type of unemployment each represents.
a. Because of the decline in the U.S. birth rate, baby clothes manufacturers are laying off workers.
b. Bill decided to relocate to Texas. He quit his present job and found a new job in Texas three weeks later.
c. As interest rates continue to rise, the sale of new homes decreases. This has caused an increase of unemployed construction workers.
d. As the fall harvest ends, agriculture unemployment increases.
e. Janet worked in the drive-up window of a bank. The bank has installed an automated teller machine and has closed the drive-up window. Janet's job no longer exists, so she has to start looking for another job.
f. The state of Missouri has enacted a law stating that no one under the age of 21 can work in an establishment that sells liquor. Mark, an 18-year-old, was working as a waiter in a restaurant that sells alcoholic beverages. He can no longer work at the restaurant.
a. Because of the decline in the U.S. birth rate, baby clothes manufacturers are laying off workers.
b. Bill decided to relocate to Texas. He quit his present job and found a new job in Texas three weeks later.
c. As interest rates continue to rise, the sale of new homes decreases. This has caused an increase of unemployed construction workers.
d. As the fall harvest ends, agriculture unemployment increases.
e. Janet worked in the drive-up window of a bank. The bank has installed an automated teller machine and has closed the drive-up window. Janet's job no longer exists, so she has to start looking for another job.
f. The state of Missouri has enacted a law stating that no one under the age of 21 can work in an establishment that sells liquor. Mark, an 18-year-old, was working as a waiter in a restaurant that sells alcoholic beverages. He can no longer work at the restaurant.
Microeconomics
If the market demand and supply function are given as dlqd+5p=120 qs=11p- 80 then what are the market clearing price and the crossponding quantities ?
