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: https://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

Determinants of private demand - linkages with employment, Determinants of ...

Determinants of Private Demand - Linkages with Employment Employment potential of courses in higher education is an important determinant of private investment in higher educa

Equilibrium, Equilibrium is explained as follows: Equilibrium is the st...

Equilibrium is explained as follows: Equilibrium is the state in which there are no shortages and surpluses; or we can say that the quantity demanded is equal to the quantity s

Demand for chips elastic, The demand schedule for computer chips is given i...

The demand schedule for computer chips is given in the table. Price (dollars per chip) Quantity demanded(millions of chips per year) 200

What is utility maximization according to consumer behavior, What is utilit...

What is utility maximization according to consumer behavior? Consumer Behavior: Utility Maximization A foundational hypothesis onto individual behavior within modern econ

Economics for money, 1. Discuss how banks make money, and are structured in...

1. Discuss how banks make money, and are structured in respect to Asset, Liability and Capital Management – give examples.

Oligopoly, Ask question #Minimum 100 wordswhat ism accepted#

Ask question #Minimum 100 wordswhat ism accepted#

Determine the efficient amount of refrigerant, The marginal benefit of a re...

The marginal benefit of a refrigerant in a production process (the producer's willingness to pay for its use) is 100-5Q.  The marginal damage from the use of the refrigerant on the

Stoichiometry , Mg(OH)2 + 2HCl-----> MgCl2 +2H2O how many grams of magnesiu...

Mg(OH)2 + 2HCl-----> MgCl2 +2H2O how many grams of magnesium chloride can be produced from 14.60mL of a 0.546M hydrogen chloride solution?

Evolutionary model , Normal 0 false false false EN-IN ...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Economics, #question.what is meant by ppc?illustrate the central problems o...

#question.what is meant by ppc?illustrate the central problems of aneconomy with this curve.

Write Your Message!

Captcha
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!

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