...
Formatted: Bullets and Numbering
Chapter 4: Individual and Market Demand
42
Price
Clothing
Price
Food
Quantity
Clothing
Quantity
Food
Income
$10 $2 6 20 $100
$10 $2 8 35 $150
$10 $2 11 45 ...
2. An individual consumes two goods, clothing and food. Given the information below, illustrate the income
consumption curve, and the Engel curves for clothing and food.
Formatted: Space Before: ... income is reduced. This
will shift her budget line inwards, and cause her to consume less of both goods. Notice that Jane
always consumes the two goods in a fixed 1:2 ratio. This means that Jane...
...
b )Kinh tế học vimôKinhtế học vi mô:
-là môn khoa học quan tâm đến việc nghiên cứu, phân tích,
lưa chọn các vấn đề kinhtế cụ thể của các tế bào trong một nền kinh tế
-Kinh tế học vimô ... tếvi
mô
1.Các khái niệm về kinhtế học
a) Kinhtế học
Kinh tế học là môn khoa học xã hội nghiên cứu cách chọn lựa của nền
kinh tế trong việc sủ dụng nguồn tài nguyên có giờ hạn để sản xuất ... tªn: NguyÔn V¨n C¶ng
Líp :KTB49-§HT2
12
BTL KINHtếvi mô
kinhtế học vimô và nhưng vấn đề cơ bản của
doanh nghiệp
I .Đối tượng ,nội dung và phương pháp nghiên cứu kinhtếvi
mô
1.Các...
... People generally buy clothing in the city in which they live. Therefore there is a
clothing market in, say, Atlanta that is distinct from the clothing market in Los
Angeles.
This statement is false. ...
country to buy clothing, suppliers can easily move clothing from one part of
the country to another. Thus, if clothing is more expensive in Atlanta than
Los Angeles, clothing companies could ... 1980 to 2001?
Compare this with your answer in (b). What do you notice? Explain.
Percentage change in real price from 1980 to 2001 =
−2.43 2.98
=− =−0.18 18%
2.98
. This answer is almost identical...
...
Q=473.5-38.5P.
c. Which coffee has the higher short-run price elasticity of demand? Why do you
think this is the case?
Instant coffee is significantly more elastic than roasted coffee. In fact, ... the short-run as many people think of
coffee as a necessary good. Changes in the price of roasted coffee will not
drastically affect demand because people must have this good. Many people, on ... 283P. Of this, domestic demand was Q
D
=
1700 - 107P. Domestic supply was Q
S
= 1944 + 207P. Suppose the export demand for
wheat falls by 40 percent.
a. U.S. farmers are concerned about this...
... obtain one more unit of clothing. He will
therefore find it optimal to give up some food in exchange for clothing.
34
Chapter 3: Consumer Behavior
opt imal bundle
food
clothing
current bundle
... F=5. Utility is 1000.
This bundle is on an indifference curve between the two you had previously
drawn.
16. Julio receives utility from consuming food (F) and clothing (C) as given by the ... food is $2 per unit, the price of clothing
is $10 per unit, and Julio’s weekly income is $50.
a. What is Julio’s marginal rate of substitution of food for clothing when utility is
maximized?...
... $448.59. This means he would pay
$1000-$448.59=$551.41 to insure his gamble.
d. In the long run, given the price of the lottery ticket and the probability/return table,
what do you think the ... 0.05
( )
16.5
0.5
( )
= 3.157.
This is less than 3.162, which is the utility associated with not buying the ticket
(U(10) = 10
0.5
= 3.162). He would prefer the sure thing, i.e., $10.
c. Suppose ... still
maintain the same return in terms of the total flow or payment from the Treasury
bills. In this second case, the investor may be willing to place more of his savings
into the riskier asset....
... K, and
find q. Now increase K by 1 unit and find the new q. Do this a few more times
and you can calculate marginal product. This was done in part b above, and is
done in part d below.
Formatted: ... marginal product is constant for this production
function. When L increases by 1 q will increase by 3. When K increases by 1 q
will increase by 2.
b.
q
=
(2L
+
2K)
1
2
This function exhibits decreasing ... been
employing one worker, but is considering hiring a second and a third. Explain why the
marginal product of the second and third workers might be higher than the first. Why
might you expect...
...
run, how much labor will the firm require? Illustrate this point on your graph and
find the new cost.
The new level of labor is 39.2. To find this, use the production function
q =10L
1
2
K
1
2
... firm will move out horizontally to the new isoquant and new
level of labor. This is point B on the graph below. This is not likely to be the cost
minimizing point. Given the firm wants to produce ... $50,000. The airline flies
this route four times per day at 7am, 10am, 1pm, and 4pm. The first and last flights are
filled to capacity with 240 people. The second and third flights are only half...
... $50. This is the most they would pay on a per day basis.
14. A sales tax of $1 per unit of output is placed on one firm whose product sells for $5 in a
competitive industry.
a. How will this ... in the 0-7 units of output range because in this
range AVC is greater than MC. When AVC is greater than MC, the firm minimizes
losses by producing nothing.
Chapter 8: Profit Maximization and ... firm will develop approximately 34 rolls
of film (rounding down). If q=34 then profit is $33.39. This is the most the firm
would be willing to pay for the new technology. Note that if all firms...
... Analysis of Competitive Markets
120
areas
A
and
B
. This is the increase in producer surplus. Consumers gain areas
C
and
F
. This is the increase in consumer surplus. Deadweight loss ... economists are worried about the impact of
this program, because they have no estimates of the elasticities of jelly bean demand or
supply.
a. Could this program cost the government more than ...
per ounce. Unlimited quantities are available for import into the United States at this price.
The supply of this metal from domestic U.S. mines and mills can be represented by the
equation...
... policy. One of the things the company would like to
know is how much a 5 percent increase in price is likely to reduce sales. What would you
need to know to help the company with this problem? Explain ...
DWL = (2.04 - 1)(490 - 479.6)(0.5) = $5.40.
c. Kristina knows that deadweight loss is something that this small town can do without.
She suggests that each household be required to pay a fixed ... below, this difference is represented by the
lost profit area, which is the triangle below the marginal cost curve and above the
marginal revenue curve, between the quantities of 11.25 and 15. This...