Economics Answers

"The pricing of pharmaceutical products can be controversial. A recent example is EpiPen
produced by Mylan which is used to treat anaphylaxis. The retail price of an EpiPen is
$300, while industry sources estimate that it costs around $30 to produce each unit (i.e.
one dose). Despite this high price, Mylan sells 1 million units a year."

Based on the above information, I have been told to solve the following question:

"Assume Mylan's indirect demand function is linear: P = a – bQ, where Q is measured
in millions of units. Using the definition of the point elasticity of demand, the elasticity
you calculated in part 1 and the unit sales of EpiPen, find the values of “a” and “b” in the
above equation."

I have already found the Elasticity in Part 1, it was found to be -0.9, but I am unsure on how to proceed.

What is the difference between GDP and GVA?

The market price of pizzas in a university town increased recently, and the students in an economics class are debating the cause of the price increase. Some students suggest that the price increased because several pizza parlours in the area have recently gone out of business. Other students attribute the increase in the price of pizzas to a recent decrease in the price of beer.

13. Consider a perfectly competitive market described by the supply function P = 20 + 0.3Q and demand function P = 120 - 0.2Q. The total economic surplus (consumer surplus + producer surplus) generated by the good when the market is in equilibrium is:
A. $4,000
B. $6,000
C. $8,000
D. $10,000
E. $16,000
F. $20,000

why prices increase when there is a shortage in AD/AS model?

How can I incorporate income in the marginal analysis

Discuss any four factors that lead to the appreciation of the currency of your country in terms of the US Dollar.

. Suppose consumer A’s preferences between goods x and y are represented
by the utility function uA(x, y) = min{x + 2y, 2x + y}, while consumer B’s
preferences are represented by the utility function uB(x, y) = min{2x +
4y, 4x + 2y}. Suppose consumers A and B have the same income. Compare
these two consumers’ consumption bundles

explain using properly labelled diagrams why a perfectly competitive firm will earn only a normal profit in the long run

Refer to Exhibit 4-9. If the wheat market is in competitive equilibrium, the consumers’ surplus will equal


a.
area 1 + 2 + 3

b.
area 1 + 2 + 4

c.
area 3 + 5

d.
area 1 + 2 + 3 + 4 + 5

e.
area 6