Microeconomics Answers

Alex sells an ipod for $200 and gets producer surplus of $80.
What is her willingness to sell?
if she sold the ipod for $80, what would her producer surplus have been?
if the price of an ipod were $200, what would her producer surplus have been?

here is the question

Coffee and tea are substitutes. The demand for each depends on its own price as well as the price of its substitiute. Supply and demand curves are given below for each:-

Coffee Demand Qdc = 60-6Pc + 4Pt
Coffee Supply Qsc = 3Pc

Tea demanded Qdt = 20-2Pt + Pc
Tea Supply Qst =2Pt
Where Pc is the price of coffee and Pt is the price of Tea

Find the equilibrium prices and quantities for coffee and tea . Hint Both markets must be simultaneously in equilibrium.

Answers Are Pc =10 Qc =30 PT = 7.5 QT =15 ( but i don't know how they got to those answers ?)

Equilibrium for a monopoly firm looks exactly like long-run equilibrium for a monopolistically competitive firm.
true or false

Syldavia is a country that has 200 workers and neighbouring Borduria has 250 workers. In Syldavia, each worker can make 20 pairs of socks or 30 candles in one year. In Borduria, each worker can make 16 pairs of socks or 20 candles in one year. Who has comparative advantage in producing which good and how will they trade with each other?

In a small town there are two sushi restaurants. If neither restaurant advertises, revenue will not change. If only one firm advertises, that firm will double its revenue and the firm that doesn’t advertise will see a decrease in revenue. But if both firms advertise, their revenue will not change. What outcome is predicted by game theory (Nash Equilibrium)? (2)
a) Both restaurants will advertise
b) One restaurant will advertise
c) Neither restaurant will advertise
d) Game theory is a load of bunk
e) Sometimes only one firm will advertise and the rest of the time both firms will advertise

Consider Peter’s Pizza Place. Peter needs to know if he is optimizing cost in handling his inputs of capital and labour. This is what he sees: (5)

Marginal Product of Capital 3,200 pizzas/oven
Marginal Product of Labour 1,400 pizzas/worker
Wage Rate $280/week
Rental Price of Ovens $800/week

Using this information, find out if Peter is optimizing his costs and if he is not, then how should he reallocate his factors of production?

3. (60 points) In the commodity market Qd- 200-2P, Qs-2P-50. Government impose a subsidy S 10 per unit of goods. Determine: I. Find the elasticity demand and supply in the point of equilibrium. 2.How to changes consumer and produce surpluses. 3. Pw 40, what happens with consumer and producer surpluses, if the country decide to import goods 4. Government wants to restrict import and impose a tariff 10. How to change consumer and producer surpluses, government revenue, DWL

What factors have influenced the demand for motorbikes / scooty in the last few years in Kathmandu? Focus your attention on income, attitudes, and the prices of other products. Explain with graph how changes in these factors would either increase or decrease the demand for motorbikes/ scooty.

critically examine how revealed preference theory relates to consumer demand

a. What factors have influenced the demand for motorbikes / scooty in the last few years in Kathmandu? Focus your attention on income, attitudes, and the prices of other products. Explain with graph how changes in these factors would either increase or decrease the demand for motorbikes/ scooty.