Start Discovering Solved Questions and Your Course Assignments
TextBooks Included
Active Tutors
Asked Questions
Answered Questions
what is producer surplus? “The more the competition among the sellers, the less the producer surplus enjoyed by the producers” – do you agree with the statement. Justify your answe
Suppose the price of widgets falls from $7 to $5 and consumption of widgets rises from 15 widgets a month to 25 widgets. Calculate your price elasticity of demand of widgets. What can you say about
Assume that the equation for demand for bread at a small bakery is Qd = 60 - 10Pb + 3Y, where Qd is the quantity of bread demanded in loaves, Pb is the price of bread in dollars per loaf, and Y is the
Suppose the president is attempting to decide whether the federal gov should spend more research to find a cure for heart disease. How should policy makers determine the amount of money that shou
Suppose that as the price of Y falls from $3.00 to $1.00 the quantity of Y demanded increases from 10 to 18. Compute the price elasticity of demand. Is the demand elastic or inelastic?
Consider two individuals considering how many iced coffee drinks to buy during the coming week. Person A is willing to pay a maximum of €10 for the first drink, €8 for the second,
Inter-temporal Price Discrimination. Suppose that technophiles are willing to pay $400 now for the latest iPhone, but only $300 if they have to wait a year. Normal people are willing to pay $250,
If your bank pays 5.5 percent interest on savings deposits, what is the simple interest paid in the third year on an initial $100 deposit? What is the total amount in the account after three year
There are two types of consumers of potatoes: 10 are rich and 50 are poor. Every rich consumer has a demand of 0 for a price of $500/ton; and his/her demand decreases by 1 ton each time the price incr
There are two goods 1 and 2. Denote by (x1; x2) the consumption bundle consisting of x1 units of good 1 and x2 units of good 2. A consumer has preferences that described by the linear utilit
If the US dollar depreciates dramatically relative to the Chinese yuan, what effect would this have on consumers and businesses in each country? When is a falling dollar good or bad for the US?
Which aspects of the Great Depression are echoed in the ongoing economic crisis that began in 2008? What is different about the two periods? Do they have similar theoretical explanations?
A firm uses a single plant with costs C = 160 + 16Q + .1Q2 and faces the price equation P = 96 - .4Q. a. Find the firm’s profit-maximizing price and quantity. What is its profit? b. Th
Prepare a two- to three-page analysis:What is nominal GDP? What is real GDP? What is included in each? Why are these measures important? What do they tell us? What was GDP for the last two yea
Suppose that the market of laptops is given by following supply and demand curves given below: Qd = 5000 − 3p Qs = 1000 + p. Answer the following questions on excel sheet us
What is one of the major problems caused by a large national debt? It does not allow small investments by private individuals. It makes it hard for the government to carry on activitie
Assume that demand for product A can be expressed as QA = 500 ¨C 5PA + 3PB and demand for product B can be expressed as QB = 300 ¨C 2PB + PA. Currently, market prices and quantities for&n
A firm produces 20 units of output at a market price of #5, a marginal cost of $5, and an average cost of $3. what is the firms economic profit and is the firm maiximizing its economic profit. Is
When McDonald's Corporation reduced the price of its Big Mac by 75 percent if customers also purchased french friesand a soft drink. The Wall Street Journal reported that the company was hoping the no
For each of the following products, write a few sentences answering the following questions: • Is price discrimination of any sort feasible? • If price discrimination is feasible,
What is a supply shock? Give an example of a current supply shock. Which way does this shock move the AS curve? What is the resulting impact on potential GDP and the price level?
The price of a wideget increases by 90%. What effect would we expect this to have on the equilibrium wage rate of workers who make widgets? Would this increase, decrease, or keep the wage rate th
While sitting in your office one evening, you begin to think about some of the key microeconomic messages you want to communicate to the Board. Key concepts include, but are not limited to, supply and
If a soybean grower for who price exceeds average total cost for a wide range of output is currently producing where Average Total Cost is at a minimum. What economic advice would you
The total operating revenues of a public transportation authority are $100M while its total operatiing costs are $120M. The price per ride is $1, and the price elasticity of demand for transportation