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what are your thoughts about design thinking? Incorporate in your reflection the concept of social
innovation learned
Economists in Champaign have been studying the local market for pizza. They've found that the demand for pizza can be described by the following equation: P= 20 - 0.1Q.
What is the price elasticity of demand(using the Midpoint method) when moving from a quantity of 20 to 30?
The following Table-3 depicts the market for rice (millions of kilos). Use this table to
answer following questions.
3
Table-3
Price ($) of rice
2.00
4.00
6.00
8.00
10.00
Quantity demanded
90
80
70
60
50
Quantity supplied
30
50
70
90
110
(a) Draw the demand and the supply curves for rice.
(b) What is the present equilibrium price and quantity exchanged in this market?
(c) Suppose that government introduces a price floor of $8 kilo. How much in total will
rice buyers now be paying?
(d) As a result of the price floor, what will be the total amount of surplus? What will be
the dollar amount of this surplus?
(e) Who will be responsible for buying this surplus?
The following Table-2 depicts the market for pizzas (number of pizzas per month).
Use this table to answer following questions. 4 Table-2
Price ($) per pizza
2.00
3.00
4.00
5.00
6.00
Quantity demanded
640
600
560
520
460
Quantity supplied
400
480
560
640
720
(a) Draw the demand curve for pizzas and supply curve of pizza in a diagram
(b) Explain how the equilibrium in pizza market is determined
(c) What are the values of equilibrium price and quantity exchanged
(d) What will happen in equilibrium price and the quantity demanded if the price of
sandwich goes up assuming that both pizza and sandwich are normal goods
(e) What will happen in equilibrium price and the quantity demanded if an advanced
technology introduced in pizza production
a.Let the social welfare function be W = UA + UB. Draw the UPF and using this social welfare function, show which allocation(s) maximizes social welfare. How would you describe the relative importance to each individual's respective well-being?
b.Let the social welfare function be W = 10UA + UB. Draw the UPF and using this social welfare function, show which allocation(s) maximizes social welfare. How would you describe the relative importance assigned to each individual's respective well-being?
c.Let the social welfare function be W = min(UA, UB). Draw the UPF and using this social welfare function, show which allocation(s) maximizes social welfare. How would you describe the relative importance assigned to each individual's respective well-being?
#339914 on Dec 2023