Explain what will happen to consumer and producer surplus

Assignment Help Microeconomics

Reference no: EM131174492

Question 1 -

Explain the link between scarcity, choice and the production possibility curve. In your answer use graphs and include a description of the three concepts in your own words (300 words maximum).

Outline the major factors that determine the type of economic system existing in a country. Based on the factors you noted above, describe the principal differences between the Australian economy and the Chinese economy (300 words maximum).

Question 2 -

a. There has been a breakthrough in the manufacturing of solar-powered motor vehicles that will substantially reduce their costs of production. Use demand and supply curves to illustrate what will happen to:

i) the equilibrium price and quantity of solar-powered motor vehicles.

ii) the equilibrium price and quantity of conventional motor vehicles.

In an attempt to increase the use of solar-powered motor vehicles the government decides to set a minimum price for solar-powered vehicles that is below the market price. Do you think this is a good idea? Explain your decision using graphs.

Question 3 -

Explain what will happen to consumer and producer surplus and deadweight loss if the government imposes a tax on sellers for each radio they produce in order to raise government income? Include in your answer an explanation of the three concepts - consumer surplus, producer surplus and deadweight loss.

Question 4 -

The local cinema wants to increase its total revenue. It is considering the introduction of a 10% discount to locals. The company has estimated that there are two types of local customers who will have different responses to the discount offer. The likely responses of the two groups are shown in the table below.

	Group A (ticket sales per week)	Group B (ticket sales per week)
Ticket sales before the 10% discount	1.55m	1.50m
Ticket sales after the 10% discount	1.65m	1.70m

i) Using the midpoint method, calculate the price elasticities of demand for Group A and Group B.

ii) Explain how the discount will affect total revenue from each group.

iii) Should the company offer the discount if it wants to increase its total revenue.

iv) Describe the impact on the demand elasticity for the original company when another cinema opens in the town.

Reference no: EM131174492

Questions Cloud

Determine what the resistance coefficient k of the valve : A 160-mm pipe branches into a 100-mm and a 50-mm pipe as shown in Fig. 12.10. Both pipes are hydraulic copper tubing and 30 m long. (The fluid is water at 10°C.) Determine what the resistance coefficient K of the valve must be to obtain equal volu..

Flow of control in java : Flow of Control in Java When processing data, it is necessary to make comparisons and validate the information entered. This week those skills will be learned by understanding the if-else and looping statements (while, do-while, and for-loop).

Write a paper assignment on bacillus anthracis : Write the Paper Assignment.- Title: Bacillus Anthracis - Bacillus anthracis is a gram-positive spore forming bacterium that causes anthrax, an acute, often fatal infection.

Compare and contrast public and in-house cas : Compare and contrast public and in-house CAs. Include the positive and negative characteristics of each type of certificate authority, and provide a sound recommendation of and a justification for which you would consider implementing within your ..

Explain what will happen to consumer and producer surplus : Explain what will happen to consumer and producer surplus and deadweight loss if the government imposes a tax on sellers for each radio they produce in order to raise government income? Include in your answer an explanation of the three concepts -..

Assignment on outline a new it security policy : You have been hired by the Board of Directors of RollinOn, Inc as the new IT Security Manager. RollinOn is a designer of premade and custom designed skates and skateboards.

Explain the concepts of information systems security : Explain the concepts of information systems security as applied to an IT infrastructure. Describe the principles of risk management, common response techniques, and issues related to recovery of IT systems.

Taking the course would understand : Discuss and explain the most interesting/important topic/concept that you learned this semester in this class. Explain it in such a way that a student that was not taking the course would understand. Give details, but do not be overly technical.

Processing speeds of different computer systems : A term associated with the comparison of processing speeds of different computer systems is?

User Account

All Pages