Microeconomics Answers

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?

What will be shape of the price consumption curve if X and Y are substitute goods. What can you about the own and cross price elasticities of demand, Explain using graph

How would you decompose the total effect of a reduction in the price of an inferior good into the income and substitution effect components? What will happen if the income effect is too large?

With an aid of a graph illustrate and critically analyze the concept of technical progress using an isoquant. And the inputs are tractors and hoes and the output is groundnut?

On average, households in China save 40 percent of their annual income each year, whereas households in Canada save less than 5 percent. Production possibilities are growing at roughly 9 percent annually in China and 3.5 percent in Canada. Use graphical analysis of “present goods” versus “future goods” to explain the differences in growth rates.
Instructions: Refer to the diagram on the left.

Which point best represents the combination of present and future goods in Canada?

Which dashed production possibilities curve best represents future growth in Canada?
Instructions: Refer to the diagram on the right.

Which point best represents the combination of present and future goods in China?

Which dashed production possibilities curve best represents future growth in China?

Refer to the figure below. Suppose that the cost of cheese falls, so that the marginal cost of producing pizza decreases.



Will the MC curve shift up or down?



Will the optimal amount of pizza increase or decrease?

Potatoes cost Janice $1.00 per kilogram, and she has $6.00 that she could possibly spend on potatoes or other items. If she feels that the first kilogram of potatoes is worth $1.50, the second kilogram is worth $1.14, the third kilogram is worth $1.05, and all subsequent kilograms are worth $0.30, how many kilograms of potatoes will she purchase? What if she only had $3.00 to spend?

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 16 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?

with the aid of a graph, illustrate and critically analyze the concept of technical progress using an isoquant. the inputs are:
1) power tiller
2) hoes

plzz tell me the growth model in which energy labour and capital is used but capital is replaced by energy .then the model has energy and labor input tell me the theory which discuss just energy and labour as input .especiAlly in case of industrial output.