# Which of the following statements is correct? An increase in the

Get college assignment help at uniessay writers Which of the following statements is correct? An increase in the price of C will decrease the demand for complementary product D. A decrease in income will decrease the demand for an inferior good. An increase in income will reduce the demand for a normal good. A decline in the price of X will increase the demand for substitute product Y

## 600–800 words Your think tank had originally planned to discuss current

600–800 words Your think tank had originally planned to discuss current GDP, unemployment, and inflation issues, discussing the three economic measures in three separate conversations. Gabe thinks that it makes more sense to discuss these three measures together and focus on the relationships between them and the factors that affect these numbers. Gabe has asked you the following: • How comfortable are you with these topics? • How should these topics be discussed by the think tank members? You are meeting with Gabe later this week. Prepare what you will tell Gabe by writing up a short report to address the following: • To prove to Gabe that you are comfortable and knowledgeable in this area of economics, provide an explanation of GDP, unemployment, and inflation as measures of economic activity. Cite recent examples and issues in each area to support your demonstration of understanding. • Discuss the extent to which you believe these three measures are related, whether or not it is best to discuss each separately, and why you feel this way. You do not have to agree with Gabe, but you do need to support your reasoning.

## Use the plotting tool to place an orange square at the

Use the plotting tool to place an orange square at the point on the total cost curve that corresponds to average variable cost = \$10. (Hint: This is the lowest value of average variable cost for Mama’s Gourmet Pizza.)

MPS=0.125

## 1. The daily demand for newspapers on Strayer Island is given

1. The daily demand for newspapers on Strayer Island is given by the equation QD = 250,000 – 375P. The daily supply of newspapers on Strayer Island is given by the equation QS = 15,000 212.5P. Graph these demand and supply curves. Use the Graph to determine the equilibrium price and quantity of newspapers in Strayer Island? ** Record the answers from the graph in the ANSWER BOX . Please attach the graph in a separate file labeled graph for HW 2”. Thanks. 2.The figure below shows a firm in a perfectly competitive market: (No explanation needed. Please provide the answer(s) only. Thanks) a. Determine the Shut- down Price b. Identify the firm’s short run Supply curve (must specify all the letters representing the supply curve.) 3.Fill in the blanks to complete the following statements. “Assume a perfectly competitive market is initially in long-run equilibrium. In the short run, a decrease in raw materials prices will cause the firm’s average costs to (a)_Fall_______. As a result, the profits of existing firms will (b)._______. However, over the long run, this will cause the number of firms in the market to (c).________, and market price will (d).________ until firms once again earn a (e). ———– _______ _________” 4.Assuming the firm shown in the graph below is a monopolist. Determine the price and output if the firm wants to maximize profits. 5.The market for rice has been estimated to have these supply and demand relationships: Supply P = 10 0.01Q Demand P = 100 0.01Q, where P represents price per unit in dollars, and Q represents sales per week in tons. a)Algebraically determine the equilibrium price and sales. b) Determine the amount of shortage or surplus that would develop at P = \$40/ton. 6 The demand for tickets to an event is given by the equation The supply of tickets to the event is given by the capacity of the stadium, which is 150,000. a) What is the equilibrium price of tickets to the event? b) Compute the price elasticity of demand at the equilibrium price and c) state whether demand is elastic or inelastic. d ) How do you know? Choose one: 7. Suppose the real price of a college education increased, and total enrollment increased. Which of the following could have caused this increase in price and enrollment? a. A shift to the right in the supply curve for college education and a shift to the left in the demand curve for college education. b. A shift to the left in the supply curve for college education and a shift to the right in the demand curve for college education. c. A shift to the left in the supply curve for college education and a shift to the left in the demand curve for college education. d. None of the above.

## 1. The only variable input a janitorial firm uses to clean

1. The only variable input a janitorial firm uses to clean offices is workers who are paid a wage, w, of \$8 an hour. Each worker can clean four offices an hour. Determine the variable cost, the average variable cost, and the marginal cost of cleaning one more office. Draw a diagram to show the variable cost, average variable cost, and the marginal cost curves. 2. Suppose the government increases payroll taxes to 25% of a workers wage. What effect will this tax have on the firm’s choice of labor and capital to produce a given level of output? 3. Given the formulas for and plot AFC, MC, AVC, and AC if the cost function is: C = 10 q2 4. In late 2004 and early 2005, the price of raw coffee beans jumped as much as 50% from the previous year. In response, the price of roasted coffee rose about 14%. Why would firms increase the price less than in proportion to the rise in the cost of raw beans? 5. Mercedes-Benz of San Francisco advertises on the radio that it has been owned and operated by the same family in the same location for 48 years (as of 2010). It then makes two claims: first, that because it has owned this land for 44 years, it has lower overhead than other nearby auto dealers, and second, because of its lower overhead, it charges a lower price on its cars. Discuss the logic of these claims. 6. Show diagrammatically the effects of a specific sales tax on welfare as the elasticity of demand changes. Who is relatively harmed more as the elasticity of demand increases – consumers or producers? 7. In 2002, Los Angeles imposed a ban on new billboards. Owners of existing billboards did not oppose the ban. Why? What are the implications of the ban for producer surplus, Consumer surplus and welfare? Who are the producers and consumers in your analysis? Who else does the ban affect welfare in Los Angeles? 8. A government is considering implementing a tariff or a quota. Ceteris paribus, why might the government prefer one intervention over the other? 9. A city centre imposes a rent control law that places a binding ceiling on the rent that can be charged for an apartment. The suburbs of this city do not have rent control. What happens to the rental prices in the suburbs and to the equilibrium number of apartments in the total metropolitan area, in the city centre and in the suburbs? Hint: assume that people are indifferent between living in the city centre or the suburbs. 10. The demand functions for Q1 and Q2 are: Q1 = 10 – 2p1 p2 Q2 = 10 – 2p2 p1 There are 10 units of each good. What is the general equilibrium?

## Why study perfect competition market?

Why study perfect competition market?

## . You are the manager of a firm that plans to

. You are the manager of a firm that plans to expand the human resource base of its operation by hiring additional business school graduates over the next few years. You recently read an article in The Wall Street Journal that reports that enrollments in business schools have declined as students are moving into the “hard sciences.” That same article reports that the shakeup of upper-management is over at U.S. firms, and that over the next decade there will be a nationwide surge in the demand for MBA’s. How will these events affect your firm’s ability to expand its own base of MBA’s?

## Question 1 1 points Save Which of the following is true

Question 1 1 points Save Which of the following is true about demand?:: . Goods that are demanded are goods that are needed to survive while goods that are desired are typically luxuries. Consumers not only desire, but also are able to pay for demanded goods Desired goods typically sell at a higher price than demanded goods. Goods that are demanded have a more price inelastic demand than goods that are desired Question 2 1 points Save If the price elasticity of demand is 1.0 and a firm raises its price by 20 percent, the total revenue will Rise by 20 percent Fall by 20 percent Double Not change Question 3 1 points Save If the price elasticity of demand is 3.5, then a 20 percent increase in the price of the good will lead to a _______ percent decrease in the quantity demanded 70.00 17.50 7.00 5.71 Question 4 1 points Save Which of the following is most likely to be inelastic with respect to demand? Illegal drugs Airline travel New cars HDTV sets Question 5 1 points Save The demand curve is downward sloping because as marginal utility diminishes: Producers are willing to supply more of the good only at higher prices. Consumers are willing to buy less of the good only at lower prices Producers are willing to supply more of the good only at lower prices curve. Consumers are willing to buy more of the good only at lower prices. Question 6 1 points Save Sociopsychiatric explanations of consumer behavior include Ego and status concerns. Income and wealth Prices of other goods All of the above. Question 7 1 points Save If the price elasticity of demand is 1.5, and a firm raises its price by 20 percent, the quantity sold by the firm will, ceteris paribus: Rise by 13.3 percent Fall by 13.3 percent Rise by 30.0 percent. Fall by 30.0 percent Question 8 1 points Save The difference between total utility and marginal utility is that . Total utility is the satisfaction from consuming one additional unit of a good while marginal utility is the complete satisfaction from consuming a good Total utility is the complete satisfaction from consuming a good while marginal utility is the satisfaction from consuming one additional unit of a good Both represent the satisfaction obtained from most all goods and services Total utility is the satisfaction from consuming a good while marginal utility is the satisfaction from consuming services Question 9 1 points Save The law of demand and the law of diminishing marginal utility are related since both: Predict that consumers will continue to buy unlimited amounts of goods Address the budget constraints that consumers face Assume that the first units consumed have more utility than subsequent units Assert that consumer preferences are not as significant as price and income Question 10 1 points Save Economic explanations of consumer behavior include Social status. Prices and income. Ego gratification The desire for status Question 11 1 points Save With a greater amount of consumption, total utility Always decreases Increases as long as marginal utility is positive Increases only if marginal utility increases Always increases Question 12 1 points Save The demand for _______ is relatively inelastic: New cars TVs Gasoline in the short run. Airline travel Question 13 1 points Save Suppose Suzuki increases the price of a particular motorcycle model by 12 percent and as a result the quantity demanded for that model decreases by 4 percent. The price elasticity of demand for that model is:: 0.33 3.0 4.0. 12.0 Question 14 1 points Save Suppose the price elasticity of demand for tacos is 0.80. If the price of tacos increases by 10 percent, then the quantity demanded of tacos should, ceteris paribus Decrease by 8 percent Increase by 8 percent Decrease by 1.25 percent Increase by 1.25 percent Question 15 1 points Save When income increases, the demand for most products: Increases and the demand curve shifts to the left Increases and the demand curve shifts to the right. Decreases and the demand curve shifts to the left. Decreases and the demand curve shifts to the right

## I have successfully contributed 6 documents! Gain access to everyone else’s

Get college assignment help at uniessay writers I have successfully contributed 6 documents! Gain access to everyone else’s documents by sharing of your own documents* from current or past college courses.

## In the United States today, money includes which of the following

In the United States today, money includes which of the following items? a. Federal Reserve bank notes in Citibank’s cash machines b.Your Visa card c. Coins inside a vending machine d. U.S dollars bills in your wallet e.The check you have just written to pay for your rent f. The loan you took out last August to pay for your school fees

## What are the fixed costs of (a) a pizza shop, (b)

What are the fixed costs of (a) a pizza shop, (b) an Internet service provider, (c) a corn farm? Which needs the highest sales volume to earn a profit?

## he country of meditor uses the merit as its currency. Recent

he country of meditor uses the merit as its currency. Recent national statistics showed that it ad GDP of \$700 million merits, no government transfer payments, taxes of \$210 million merits, a budget surplus of \$60 billion merits, and investment of \$100 billion merits. What were its consumption and government expenditures on goods and services

## C=500 5q 0.01q2 Q= 45,000-2000P

C=500 5q 0.01q2 Q= 45,000-2000P

## Refer to Table 13-10. What is the average variable cost of

Refer to Table 13-10. What is the average variable cost of producing 3 gigaplots at Jimmy’s Gigaplot factory?

## Office building maintenance plans call for the stripping, waxing, and buffing

Office building maintenance plans call for the stripping, waxing, and buffing of ceramic floor tiles. This work is contracted out to maintenance firms, and both technology and labor requirements are very basic. Supply and demand conditions in this perfectly competitive service market in New York are: QS = 2P – 20 (Supply) QD = 80 – 2P (Demand) – where Q is thousands of hours of floor reconditioning per month, and P is the price per hour. A. Algebraically determine the market equilibrium price/output combination. B. Use a graph to confirm your answer. For the graph, use prices: 10, 20,30,40,50,60,70,80,90 and Quantities:5,10,15,20,25,30,35,40,45,50,55,60,65 The figure below shows a firm in a perfectly competitive market: a. Find the price below which the firm will go out of business. b. What is the firm’s long run supply curve? Assignment #2

## A. Algebraically determine the market equilibrium price/output combination. QS = QD

A. Algebraically determine the market equilibrium price/output combination. QS = QD (To determine Equilibrium price) 2P – 20 = 80 – 2P 2P 2P = 80 20 4P = 100 P = 25 QD = 80 -2p QS= 2P -20 80 – 2(25) 2(25) – 20 80 – 50 50 – 20 QD = 30 QS = 30 Where Q is thousands of hours of floor reconditioning per month, and P is the price per hour. B. Use a graph to confirm your answer. For the graph, use PRICES: 10, 20,30,40,50,60,70,80,90 and QUANTITIES:5,10,15,20,25,30,35,40,45,50,55,60,65 Make sure to calculate each new QS and QD using the above prices(10,20,30,40,50,60,70,80,90). The solutions will also be a part of your graph.

## How would I plot a marginal product curve, say, given the

How would I plot a marginal product curve, say, given the number of workers on the x-axis and and the number of a certain product produced on the y-axis.

## If the AD shortfall is \$800 billion and the MPC is

If the AD shortfall is \$800 billion and the MPC is 0.8, a) How large is the desired fiscal stimulus?

## Q=4000-P-0.51 where q is the # of tVs, p is the

Q=4000-P-0.51 where q is the # of tVs, p is the per tv and I is the average monthly inc. Avg monthy income =\$2000 graph the demand curve, depict marginal rev, what price and quantity is total revenue maximised?

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