Microeconomics Answers

The following quote is from a recent MSN Money article on Clorox’s 2012 4* quarter financial
results:

Sales of Clorox cleaning products alone jumped 15% to $425 million and increased income 28%. Household sales surged 7% and profits rose 65% as both prices and demand increased and a germ-averse public stocked up.

Between strains of flu not covered by this year’s flu shot and an absolutely grotesque norovirus import from Australia that's been putting gastrointestinal systems to the test, it's been a tough few weeks fraught with peril and hand washing for the average American.

Suppose an enterprising manager wanted to use changes in the 4* Quarter to calculate the own-price elasticity of demand for Clorox cleaning products. The manager has data on changes in price and changes in quantity sold during the quarter.

a) What would be the main challenge they would face in calculating a reliable estimate of elasticity?

Please help! This is my last question and I really don't know what to do/say. In the book CPE, the authors talk about the difficulty facing governments of solving equity problems without negatively affecting efficiency. Specifically they look at inheritance taxes. Find another example that illustrates this point. Point out the efficiency and the equity implications
Roughly 200 words

when the government imposes a minimum price on motorcycle,
A) excess supply for helmets will increase
B) the supply of helmets will increse
C) the demand for helmets will increase
D) the demand for helmets will decrease

The Neumann Morgenstern approach to choice under certainty.

(a) Differentiate between hidden information and hidden action. Suggest measures for
minimizing the consequences of such problems.

Illustrate and explain what will happen to the quantity demanded for bread if the price of butter increases and the income of people who buy bread increases. (hint: one graph with 2 curves)

With the aid of a graph illustrate critically anallyse the concept of technical progress using an isoquant. The inputs are tractor and hoe and tge output is groundnut

cONSIDER A DEMAND CURVE OF THE FORM Qd= 20-2P WHERE Q IS THE QUANTITY DEMANDED AND AND P IS THE PRICE OF THE GOOD.ALSO CONSIDER A SUPPLY CURVE OF THE FORM QS=2P - 4.graph the curves.at what values of p an q do these curves intersect?

2. Discuss the difference between the assets and liabilities of central Bank

Suppose that the price of President’s Choice macaroni and cheese decreased from $10 to $8 per case, and at the same time, the quantity of Kraft macaroni and cheese sold dropped from 192 to 128 cases.
a) What is the cross-elasticity of demand between the two products? Round your answer to 2 decimal places.
b) What is the relationship between the two products?