User Account

All Pages

Assignment, Microeconomics

Assignment Help:
Individual Assignment
ECO101 - PRINCIPLES OF ECONOMICS
electronic submission via Moodle
6 Questions
100 marks (15% of total course)
All questions should be attempted. 30-50 words per mark recommended. General marking criteria apply. The marks of each question will be awarded based on your understanding of each key concept. Show working.
1. Create a market demand schedule from the following data:
At a price of 80 cents per kilogram, the demand for apples is 14,000 kilogram At 60 cents per kilogram, the demand is 20,000 kilograms
At 40 cents per kilogram, the demand is 26,000 kilograms
At 20 cents per kilogram, the demand is 32,000 kilograms
Graph the demand curve from the given data. Explain why the demand curve slopes downward and to the right, calculate the elasticity of demand and explain. (10 marks)
2. Explain the significance of the co-efficient of the PED calculated in question 1. What exactly does it tell you? (10 marks)
3. If a 6% decrease in the price of peanut butter causes total revenue to increase, what do you know about the demand for peanut butter? (10 marks)
4. If the price of French fries increase from $2.50 dollar to $3.00 dollar and we see that the demand for mayonnaise decreases from 4 units a month to 2 units a month. What do we know about these two goods? Justify your answer. (10 marks)
5. Explain, using demand and supply curves how demand and supply would change for the introduction of a new supermarket into Australia. What might change due to income fluctuations, population trends, consumer expectations and tastes, and advertising. Write your speculations down in an essay format and illustrate with graphs. Include:
1. a) Market structure
2. b) Demand/Supply curve of supermarkets and the industry
3. c) Effects on demand and supply
4. d) Elasticity of demand and supply
See: http://www.smh.com.au/business/retail/move-over-aldi-more-discount- supermarkets-could-be-on-the-way-20140716-ztoiz.html
(30 marks)


6.
The above game repsesents the interaction between a businessman and a politician. The businessman maximizes profits, and the politician maximizes the probability that he will be re-elected to office.
Give Don''t give
BUSINESS Bribe * , 0.5 *,1
Don''t bribe *,0 0 ,0.5
The businessman wants to persuade the politician to give him a monopoly in a certain industry. If he gets the monopoly, the businessman makes $10 million in profits. He is considering contributing $1 million to the re-election campaign of the politician, to try to persuade her to give him the monopoly. However, this kind of transaction is illegal, so they cannot write a contract on it. Assume that his opportunity cost is zero.
As for the politician, the probability that she is reelected if she does nothing is 0.5. If she gives the monopoly to the businessman, this reduces her probability of reelection by 0.5, as she is perceived by the public as being corrupt. If she gets a campaign contribution of $1,000,000, her probability of being re-elected increases by 0.5.
Fill in the payoff matrix, and find any Nash equilibria. Explain what each party should do. (30 marks)

Related Discussions:- Assignment

Average fixed cost, Average Fixed Cost (AFC): AFC is the fixed cost per uni...

Average Fixed Cost (AFC): AFC is the fixed cost per unit of output. AFC = TFC/y Since the TFC is constant throughout the short run, as y increases AFC will decline. Therefore

Setting up a model to forecast future demand, Because of your reputation as...

Because of your reputation as an expert in economic analysis, you have been hired as vice president of a business consulting firm named Economists R Us.  This firm provides consult

What is benefits transfer, Q. What is Benefits transfer? The process of...

Q. What is Benefits transfer? The process of transferring benefit estimates from past valuation studies to the present study, in order to reduce appraisal costs. The validity

Market structure, types of market competitions

types of market competitions

Market supply and increase in supply, Market supply and Increase in supply:...

Market supply and Increase in supply: Market supply is the total quantity of a product that all firms in an industry are willing to offer for sale at a given market price an

#t, what are the relevance of economics to most business today??

what are the relevance of economics to most business today??

Substantial practical value, The cross elasticity of demand calculates the ...

The cross elasticity of demand calculates the responsiveness of the quantity demanded of one product to alters in the price of another product.  For example, the quantity demanded

Functions and resources of the world bank, Functions and Resources of the B...

Functions and Resources of the Bank  The main functions of the Bank are as follows: •  to assist in reconstruction and development of the territories of it member-governmen

Theory of monopoly, Monopoly is that form of market where there is only one...

Monopoly is that form of market where there is only one firm producing a particular product. Being the sole supplier, the monopoly firm has the power to control prices and output t

Define why prices is significant for economy, Define why prices is signific...

Define why prices is significant for economy Reason for using different weights is that some prices are more significant than others for economy. Price of gasoline, for instanc

Write Your Message!

Captcha
Order Assignment

Featured Services

Order Now

Popular Subjects

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: info@expertsmind.com

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd