微观经济学代写 Microeconomics 经济学代写

Microeconomics

微观经济学代写 微观经济学

微观经济学代写 Section One: Elasticity of Demand

    a.Price Elasticity of Demand = (% change in Q.D)/ (% change in price)

% change in Q.D …

Question and Answer

Section One: Elasticity of Demand 微观经济学代写

a.Price Elasticity of Demand = (% change in Q.D)/ (% change in price)

% change in Q.D = ((15-10)/10) * 100 = 50%

(% change in price = ((15-20)/20) * 100 = -25%

PED = 50%/-25% = -2

b.The change price has resulted to change in quantity demanded. When price fall from $20 to $15 the quantity demanded increased from 10 to 15 unites. It shows an inverse relationship between prices and quantity.

c.The consumption of the product is very sensitive to changes in price. A small increase in price will result in a drastic fall in quantity demand, which make profits in the market low.

Section Two: Price: Price Controls and Taxes 微观经济学代写

Part 1

Determine demand and supply linear equations

Supply:

M = (X₂ – X₁)/(Y₂ – Y₁)= 500 1000 = 500(2) + b

Y = 500x +b b = 0

Quantity = 1000, price = 2 y = 500x

Demand:

M = (Y₂ – Y₁)/ (X₂ – X₁) = -500 2500 = -500(2) + b

Y = -500x +b b = 3500

Quantity = 2500, Price = 2 y = -500x + 3,500

Determining Free trade equilibrium

Supply: y = 500x                              -500x + y = 0

Demand: y = -500x + 3,500               500x + y = 3,500

2y = 3,500

y = 1,750

Insert y in one of the above equations:

1,750 = 500x

x = 3.5

Therefore, equilibrium price and quantity are 3.5 and 1,750 respectively.

Part 2: It is set below the equilibrium price

Part 3: $2.50

Part 4: Shortage of jars of peanuts butter

Part 5: At $2.50 the quantity demanded is y = -500(2.50) + 3,500 = 2,250

At equilibrium quantity demanded and supplied is 1,750 units. Thus, there will be a shortage of 2,250 – 1,750 = 500 units of jars of peanuts butter.

Part 6: Above market equilibrium

Part 7: $3.5

Part 8: Surplus of jars of peanuts butter

Part 9: At $4.00 the quantity supplied is y = 500(4) = 2000. At equilibrium, the quantity demanded and supplied is 1,750 units. Thus, there will be a surplus of 2,000 – 1,750 = 250 units of jars of peanuts butter.

Section Three: Marginal Utility 微观经济学代写

a.

b.The total allowance per week is $24

Tom will spend the first $3 on 1 movie because he will receive the highest utility. After that he will spend on pizza until he is short of money or marginal utility diminishes. Thus, he will get three pizzas at a cost of $6 per pizza, that is, $18. The remaining $3 will be spent on movies because that is what he can afford even if the marginal utility for additional pizza is higher. Overall, he will have bought 3 pizza and 2 movies.

c.Tom consumed 3 pizza and 2 movies at a cost of $24. Three pizza has total utility of 48, and 2 movies have total utility of 46. Thus, the total utility of consuming both pizza and movie is 48+46 = 94 utils.