integrated programme in management, Microeconomics

1. Suppose we observe that the price of soyabeans goes up while the quantity of soyabeans sold goes up as well. Use the supply and demand curves to illustrate two possible explanations for this pattern of price and quantity changes.

2. Explain why the price elasticity of demand for a product such as 'yogurt' is likely to be less negative than the price elasticity of demand for an 'Amul yogurt'.

3. Chinese checkers (CC, a board game) are produced and sold in a competitive market. When there is no tax on the product, the equilibrium price is Rs. 100 per CC. The point elasticity of demand is about -0.9 and the point elasticity of supply is about 1.2. In commenting on a proposed excise tax of Rs. 10 per CC, a newspaper article states that "The tax will probably drive the price of a CC up by Rs. 10". Is this a reasonable conclusion? Explain.

4. Natasha usually pays a price between 5 rupees and 7 rupees per ice cream. Over this range of prices, her weekly total expenditure on ice cream increases as the price decreases. What does this imply about Natasha's price elasticity of demand for ice cream? Explain.

5. A consumer has Rs.50 per week to spend on either commodity X, whose price is Rs.5, or commodity Y, whose price is Rs.4. For each of the four cases below, indicate whether or not this consumer is "at equilibrium," i.e., deriving the maximum-attainable satisfaction by spending all of his/her income. If you lack sufficient information to answer, explain why. If you know the consumer is not at equilibrium, indicate the required direction of movement (e.g., "buy more of X and less of Y," "buy less of X and more of Y," "buy more of both," etc.):

a. Purchases are now 2 of X and 10 of Y. Total utility of X at this level is 500 utils; total utility of Y is 400 utils

b. Purchases are now 6 of X and 5 of Y. Total utility of X at this level is 400 utils, and the marginal utility of X is 60 utils. Total utility of Y is 800 utils, and the MU of Y is 30 utils.

c. Purchases are now 6 of X and 5 of Y. The MU of X at this level is 25 utils; the MU of Y is 20 utils.

d. Purchases are now 6 of X and 4 of Y. The MU of X at this level is 25 utils; the MU of Y is 20 utils.

Posted Date: 2/22/2013 2:02:52 AM | Location : United States

Related Discussions:- integrated programme in management, Assignment Help, Ask Question on integrated programme in management, Get Answer, Expert's Help, integrated programme in management Discussions

Write discussion on integrated programme in management
Your posts are moderated
Related Questions
Draw a marginal utility cureve for a good that has a constant marginal utility

a severe restriction occurs to the availability of consumer credit throughout the banking and finance system

any village panchayat in west bengal and get information for doing a project.

A film studio in Hollywood produces movies according to the function q = F(K;L) = (2=100)K^0.5L^0.5 In the short run, capital (studios, gear) is xed at a level of 100. It costs $

sir explain me about all things of microeconomics

Economies of Scale The reduction in the cost of each additional unit produced as all factors of production increase. Factors contributing to economies of scale include discoun

Phillips Curve and Inflation-Unemployment in policy making : In the General Theory (Keynes, 1936) we noted that the state of expectations was taken as given. There was, in ad

firm''s product sells for Rs.200 per unit in a highly competitive market. The firm produces output using capital (which it rents at Rs.7500 per hour) and labor (which is paid a wag

Q. Explain Function of Central Bank? Central Bank: A public financial institution, generally established at the national level and controlled by a national government that sets