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Microeconomics
A decrease in the price of a product from R50,00 to R40,00 causes the quantity demanded to
increase from 2 500 to 3 000 units. Using the arc elasticity of demand, the price elasticity of
increase from 2 500 to 3 000 units. Using the arc elasticity of demand, the price elasticity of
Microeconomics
Each of the normal students will demand courses in the amount:
QN= 100 – 0.25 P where Q is the number of course-hours per academic year and P is the price per course-hour. Each of the workaholics, on the other hand, has a demand of:
QW= 200 – 0.5 P The school will admit 180 students from each group. (Students may choose not to enroll.) The marginal cost to the School is constant at $100 per student course-hour. Sloan’s fixed cost is $2.0 million per year. For each of the following pricing schemes, please derive the optimal price structure and the total profit, on the assumption that the School’s objective is to maximize profit from the MBA program. a. A single fixed tuition per academic year (with a zero price per course-hour), with no limit on the number of course hours. Hint: Sloan may decide to induce both types of students to enroll or just the workaholics
QN= 100 – 0.25 P where Q is the number of course-hours per academic year and P is the price per course-hour. Each of the workaholics, on the other hand, has a demand of:
QW= 200 – 0.5 P The school will admit 180 students from each group. (Students may choose not to enroll.) The marginal cost to the School is constant at $100 per student course-hour. Sloan’s fixed cost is $2.0 million per year. For each of the following pricing schemes, please derive the optimal price structure and the total profit, on the assumption that the School’s objective is to maximize profit from the MBA program. a. A single fixed tuition per academic year (with a zero price per course-hour), with no limit on the number of course hours. Hint: Sloan may decide to induce both types of students to enroll or just the workaholics
Microeconomics
Investigate and discuss the main determinants that affect the level of housing supply in the UK housing market
Microeconomics
1.Assume that electricity production has been done by several regional firms in the U.S. each operating as a pure monopoly.
a. Explain and graphically illustrate how the electrical monopolist would determine its profit maximizing price and output level. (Label Pm and Qm)
b.Identify any area of consumer and/or producer surplus for the profit maximizing monopoly.
c.Identify the deadweight loss for the monopolist.
a. Explain and graphically illustrate how the electrical monopolist would determine its profit maximizing price and output level. (Label Pm and Qm)
b.Identify any area of consumer and/or producer surplus for the profit maximizing monopoly.
c.Identify the deadweight loss for the monopolist.
Microeconomics
Lonewolf Ltd is the sole manufacturer and supplier of solar panels in the country. As a result of this the CEO claimed in a recent meeting that he can set any price he wishes and sell as many units of his product as he wants at that price. Is this correct? Motivate your answer.
Microeconomics
If we were to say that two variables are positively related, this means that:
a) The relationship between the two would graph as a line sloping downward.
b) The relationship between the two would graph as a horizontal line.
c) The relationship between the two would graph as a line sloping upward.
d) The relationship between the two cannot be depicted graphically in any simple way
a) The relationship between the two would graph as a line sloping downward.
b) The relationship between the two would graph as a horizontal line.
c) The relationship between the two would graph as a line sloping upward.
d) The relationship between the two cannot be depicted graphically in any simple way
Microeconomics
In the market for air travel, which of the following variables would decrease demand, ceteris paribus?
a) An increase in rental rates for hired cars, a substitute.
b) A rise in income of tourists.
c) A rise in the price of air travel.
d) A rise in the price of hotel accommodation, a complement.
a) An increase in rental rates for hired cars, a substitute.
b) A rise in income of tourists.
c) A rise in the price of air travel.
d) A rise in the price of hotel accommodation, a complement.
Microeconomics
In the market for air travel, which of the following variables would decrease demand, ceteris paribus?
a) An increase in rental rates for hired cars, a substitute.
b) A rise in income of tourists.
c) A rise in the price of air travel.
d) A rise in the price of hotel accommodation, a complement.
a) An increase in rental rates for hired cars, a substitute.
b) A rise in income of tourists.
c) A rise in the price of air travel.
d) A rise in the price of hotel accommodation, a complement.
Microeconomics
A community in north Namibia produces only two goods, tv's and cds. With the aid of properly labelled production possibilities curves illustrated each of the following(putting tvs on the vertical axis)
Microeconomics
a) if the residential demand for water increases but the supply authority can only supply 22.50million litres of water a day describe the situation in the market for water.
elastic inelastic?
b)what are the key influences on the elasticity of demand for residential water use that you think make demand elastic at certain price ranges
c)if the gov imposed a 0.05% per 1000litre excise tax on producers for their water supplies over all price ranges explain with a graph how you would expect this to affect the water market tax incidence
elastic inelastic?
b)what are the key influences on the elasticity of demand for residential water use that you think make demand elastic at certain price ranges
c)if the gov imposed a 0.05% per 1000litre excise tax on producers for their water supplies over all price ranges explain with a graph how you would expect this to affect the water market tax incidence
