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

Discuss the advantages and disadvantages of rate regime, Discuss the advant...

Discuss the advantages and disadvantages in having a managed exchange rate regime. Advantages of a managed/fixed exchange rate Predictability and certainty a) Fi

Molarity, i have 40cm3 of hcl of 1 molarity i want to dilute it to 0.2m can...

i have 40cm3 of hcl of 1 molarity i want to dilute it to 0.2m can yo please help

Strategic importance of supply chain management, Strategic Importance of Su...

Strategic Importance of Supply Chain Management This describes the scope of supply chain management (SCM), including the management of procurement, logistics and materials. It

Tut10, 3. You plan to sell a sunglasses clip that you can attach to a car''...

3. You plan to sell a sunglasses clip that you can attach to a car''s sun visor. You can purchase the goods from a wholesaler at $2 a piece and there is an overhead cost of $500 pe

Public expenditure trends, Public Expenditure Trends: The expenditure ...

Public Expenditure Trends: The expenditure pattern of the Government sector has been generally guided by the concern about the role of the State in the economy, both as invest

What are the problems of the transport sector, Question 1: A good inter...

Question 1: A good internal transport network is a sine-qua-non condition for development. What are the problems of the transport sector? Question 2: ICT has a defin

Mixed economy, is south african economic system more allocative efficient?

is south african economic system more allocative efficient?

Periodic table, Chemical properties of p block elements

Chemical properties of p block elements

financial systems, A surplus on the current account of balance of payments...

A surplus on the current account of balance of payments can be financed by? 1. Inflow capital on capital account 2. A surplus on the government budget deficit 3. lending abroad on

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