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• Assume the market demand for wheat may be written as

Q = 45 - 2p + 0.3Y + 1 pb

where Y refers to income, p is the price of wheat, and pb refers to the price of barley. Assuming that wheat and barley both sell for $1, and income is $20, calculate the cross-price elasticity and income elasticity for wheat.

State the Law of demand and Supply. Give example showing the concepts of the two.

Why would consumer decrease consumption even if their disposable income has not changed?

1. Given below is the Supply Schedule of Nestle Milk per liter:
   Price of Milk per liter (in Rs) 100 200 300 400
   Quantity Supplied per day in liters (in 1000s)100 200 300 400
   A. Use the above data to illustrate the Supply Curve in a graph with complete labels. (0.5 Marks)
   
   B. Assume Rs. 200 is the original price of milk per liter and 200,000 liters is the original quantity
   of supply. (0.5 Marks)
   C. Suppose the price rises from Rs. 200 to Rs. 300, what will be the amount of Quantity Supplied?
   (0.5 Marks)
   D. Illustrate the impact of (C) on the graph. (0.5 Marks)
   E. Is this a movement along the supply curve or shift of the curve? (0.5 Marks)

A monopolist sells an identical product in 2 separate markets.

The demand and cost curves are:P1= 200 -20Q1P2= 120 –5Q2

The monopolist’s total cost function is:TC = 35 +40Q

What pricing strategy will maximize the monopolist’s profits?

Determine the optimal quantities formarket 1 and market 2 and the associated prices.

Draw MARKET 1, MARKET 2, AND COMBINED GRAPHS

Market 1 price________(5 marks)

Market 1 quantity_________(5 marks)

Market 2 price________(5 marks)

Market 2 quantity_________(5 marks)

What is the mid point between demand and supply?

• If a person goes to the bowling alley planning to spend $15 but comes away with $5, what, if anything, can you conclude about the marginal utility of the alternatives (for example, bowl another line, have a soda or a sandwich) available to the person at the time he or she leaves?

Explain the meaning of related goods as it applies to supply and demand analysis.

For a monopolist firm the demand and the total cost functions are given as Q = 20-0.5P and TC= 4Q2-8Q+15, respectively. 

Find

1. a) the optimum quantity and the optimum price level
2. b) the profit/loss on these levels
3. c) at what price should the monopolist shut down?

d) Show the economic profit (loss) of the firm in a graphic representation

How do you determine output for each firm in a perfectly competitive market to make it productively efficient. Currently the industry is not efficient  

What is central fact OF economics

If the marginal cost of production is constant, what is the shape of the marginal cost curve?

What is monopoly?

True or False: Because a monopolist is able to charge a higher price than a perfectly competitive firm, his marginal revenue is higher than what a perfectly competitive firm’s would be.

it is possible that a nation could over produce a product and exchange it for a good that another nation has over produced. what is this arrangement called and what is its purpose/result?

Suppose the prices of a pair of jeans, a shirt, and a tie are $30, $20, and $10 respectively. Which of the following statements is true in this context?

I need help with an economics question. A gasoline station very near a professional football stadium parks cars on its lot to make money on game days. Last year it charged $4.00 per car and parked 1000 cars. This year it raised the parking price to $5.00 and parked 850 cars. Did the station owner make a good economic decision in raising the parking prices from one year to the next?

Suppose that doctors' visits cost $20, and the typical consumer has an income of $100. Consumers spend all of their incomes on doctors' visits and a composite good that costs $1 per unit.

Now, suppose the localgovernment is considering two health plans. Under plan A, the government will give out vouchers worth 2 free visits to the doctor.Under plan B, the government will give out four 50% coupons to be used at the doctor's office.

d) For whom is the choice of plan A or plan B not likely to matter those who are quite well, or those who are quite sick? (Hint:Superimpose some indi erence curves on your budget constraints.)

e) Which plan would someone who is generally well be likely to choose,if offered a choice

Suppose that during the past year, the price of a laptop computer fell from $2,950 to $2,450. During the same time period, consumer sales increased from 430,000 to 619,000 laptops. Calculate the elasticity of demand between these two price–quantity combinations by using the following steps. After each step, complete the relevant part of the table with the appropriate answers. (Note: For decreases in price or quantity, enter values in the Change column with a minus sign.) Original New Average Change Percentage Change Quantity 36.03% Price -18.52% Step 1: Fill in the appropriate values for original quantity, new quantity, original price, and new price. Step 2: Calculate the average quantity by adding the original quantity and the new quantity, and then dividing by two. Do the same for the average price. Step 3: Calculate the change in quantity by subtracting the original quantity from the new quantity. Do the same for the change in price. Step 4: Calculate the percentage change in quantity demanded by dividing the change in quantity by the average quantity. Do the same to calculate the percentage change in price. Step 5: Calculate the price elasticity of demand by dividing the percentage change in quantity demanded by the percentage change in price, ignoring the negative sign. Using the midpoint method, the elasticity of demand for laptops is about .

7. Agreement and disagreement among economists.

Suppose that Manuel, an economist from a business school in Georgia, and Poornima, an economist from a nonprofit on the West Coast, are arguing over government bailouts. The following dialogue shows an excerpt from their debate:

Poornima: Thanks to recent financial crisis, the concept of bailouts is a hot topic for debate among everyone these days.

Manuel: Indeed, it's gotten crazy! A government bailout of severly distressed financial firms is unnecessary because free markets will properly price assets.

Poornima: I don't know about that. Without a bailout of severly distressed financial firms, the economy will experience a deep recession.

The disagreement between these economists is most likely due to differences in perception versus reality.

Despite their differences, with which proposition are two economists chosen at random most likely to agree? a) Minimum wage laws do more to harm low-skilled workers than help them.

b) Tariffs and import quotas generally reduce economic welfare.

c) Lawyers make up an excessive percentage of elected officials.

Why is savings regarded as a leakage from the circular flow 

If a firm in a perfectly competitive market is currently producing the output where price = marginal cost = average total cost, the firm is:

A) earning a zero economic profit.
B) suffering an economic loss.
C) earning a positive economic profit.
D) all of the above

Doreen has preferences represented by the utility function U(x,y)=10x+5y. She consumes 7 units of good x and 4 units of good y. If her consumption of good x is lowered to 2, how many units of y must she have in order to be exactly as well off as before?

The Wok has been consistently ranked as the most popular fast food restaurant in the city, thanks to the excellent culinary skills of its well-trained staff and its remarkable customer service. The competitive advantage of The Wok is due to its _____.

natural resources

market resources

financial resources

capital resources

human resources

1. Explain why a monopoly would never set a price which falls on the inelastic region of the demand curve.

2. A certain town in the Midwest obtains all of its electricity from one company, Northstar Electric. Although the company is a monopoly, it is owned by the citizens of the town, all of whom split the profits equally at the end of the year. The CEO of the company claims that because all of the profits will be given back to the citizens, it makes economic sense to charge a monopoly price for electricity. True or false? Explain.

nderstanding excess capacity The following table shows the daily cost data and demand schedule for a typical firm producing board games in a monopolistically competitive market in the short run. Fill in the values in the Marginal Cost, Total Revenue, and Marginal Revenue columns in the following table and then answer the questions that follow. Quantity Price Total Cost Marginal Cost Total Revenue Marginal Revenue Average Total Cost (Board games) (Dollars per game) (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) 1 15.00 11 2 13.00 20 3 12.00 27 4 10.00 36 5 7.00 45 6 5.00 60 7 3.00 70 8 1.00 104 Under monopolistic competition, a typical firm will produce board games at a price of per board game in the short run. Based on your calculations, the firm will . Fill in the Average Total Cost column in the previous table. Based on your calculations, the level of excess capacity in this monopolistically competitive market is .

Consider the supply of mobile phones. For each of the following, state the effect on supply:

A. A change in technology that lower production costs.

B. An increase in the price of LCD screens.

C. A decrease in the price of mobile phones

D. An increase in the wages of mobile phones assembly workers.

E. An increase in consumer incomes.

You've been hired by an unprofitable firm to determine whether it should shut down its operation. The firm currently uses 70 workers to produce 300 units of output per day. The daily wage (per worker) is $100, and the price of the firm's output is $30. The cost of other variable inputs is $500 per day. Although you don't know the firm's fixed cost, you know that it is high enough that the firm's total costs exceed its total revenue. You know that the marginal cost of the last unit is $30. Should the firm continue to operate at a loss? Carefully explain your answer.

how is the concept of a normal return on investment related to the distinction between business and economics profit

Production per unit of labor hour UK US Wheat 6 1 Furniture 6 3 1. Which country has absolute advantage in the production of Wheat, of Furniture? 2. According to the absolute advantage theory which country will export Wheat?: 3. According to the comparative advantage theory how much is the opportunity cost of Wheat production in UK and in US? 4. According to the comparative advantage theory how much is the opportunity cost of Furniture production in UK and in US? 5. When trade opens according to the comparative advantage theory which country will export wheat? Why? 6. When trade opens according to the comparative advantage theory which country will export Furniture? Why? 7. At autarky price (before trade) what are the relative prices (domestic cost ratios) in UK? 8. At autarky price (before trade) what are the relative prices (domestic cost ratios) in US? 9. If trade between them take place at terms of trade of 1 W for 2 F why each country benefits from trade? Explain.

Say that investment increases by $20 for each interest rate drop of 1 percent. Say also that the expenditures multiplier is 4. If the money multiplier is 5, and each 10-unit change in the money supply changes the interest rate by 1 percent, what open market policy would you recommend to increase income by $240?

Consider Kharkeez, a hypothetical country that produces only burgers. In 2017, a burger is priced at $4.00. Complete the first row of the table with the quantity of burgers that can be bought with $300. Note: In this problem, assume it is not possible to buy a fraction of a burger, and always round down to the nearest whole burger. Year Price of a Burger Burgers Bought with $300 (Dollars) (Quantity) 2017 4.00 2018 Suppose the government of Kharkeez cannot raise sufficient tax revenues to pay its debts. In order to meet its debt obligations, the government prints money. As a result, the money supply rises by 20% by 2018. Assuming money neutrality holds, complete the second row of the table with the new price of a burger and the new quantity of burgers that can be bought with $300 in 2018. The impact of the government's decision to raise revenue by printing money is known as the .

Suppose the consumption function is C = $400 billion + 0.8Y and the government wants to stimulate the economy. By how much will aggregate demand at current prices shift initially (before multiplier effects) with Instructions: Enter your response as a whole number. (a) A $50 billion increase in government purchases? $......... billion Instructions: Enter your responses rounded to one decimal place. (b) A $50 billion tax cut? $....... billion (c) A $50 billion increase in income transfers? $........ billion What will the cumulative AD shift be for (d) The increased government spending? $........ billion (e) The tax cut? $........ billion (f) The increased transfers? $......... billion

Suppose a parent was earning $20,000 per year working at a local firm. The parent then decides to quit his job in order to care for his child, who was being watched by a babysitter for $10,000 per year.

With this action, GDP will​

How does the theory of comparative advantage relate to production possibility curves?

The theory of comparative advantage underlies the shape of the production possibility curve. As (Click to select)more and moreless and less of a good is produced, resources that have (Click to select)lessmore of a comparative advantage are brought into the production of a good, causing the production possibility curve to be bowed (Click to select)outwardinward.

Consider the market for reusable water bottles. Suppose there are 50 individuals who demand water bottles and each individual has a demand curve given by: QD = 5-2P. What is the market demand equation for water bottles?

B. What might happen to the market price as greater barriers to entry come into existence?

8. Problem-solving question: Use the following data for a perfectly competitive firm and the profit-maximizing input-combination rule to identify how many workers the firm will employ to maximize profits.

Number of Workers (L) MRPL MRCL

1 $160 $20

2 140 20

3 120 20

4 100 20

5 80 20

6 60 20

7 40 20

8 20 20