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: 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

What is Isomers and Types of Isomers, Isomers are two or more forms of comp...

Isomers are two or more forms of compounds which having the same compositions. Types of isomers (a) Stereo isomers (b) Structural isomers

Market structures, illustrate and discuss the implications of various marke...

illustrate and discuss the implications of various market structures (competitive and non competitive) for price determination

How change in the exchange rate affect the domestic economy, How might a ch...

How might a change in the exchange rate affect the domestic economy of the country? A change in the exchange rate - ceteris paribus - will alter relative prices between trading

What is the sign of the cross price elasticity, Australians are turning to ...

Australians are turning to scooters to combat escalating petrol prices. After a slump in the March quarter this year, demand for scooters was up by more than 7 per cent in the firs

Market failure, causes of market failure and its solutions?

causes of market failure and its solutions?

Partial input elasticity of output, Partial Input Elasticity of Output:   ...

Partial Input Elasticity of Output:   This is a short-run concept which deals with the variability of only one factor keeping the others constant. There are three kinds of retu

Producer behaviour, who is a rational behaviour

who is a rational behaviour

Elasticities of demand:, price of laptop increases by 20% and there is a 40...

price of laptop increases by 20% and there is a 40% drop in the quantity demanded?

Marginal Cost, Can marginal cost be constant? If so, does this mean that ma...

Can marginal cost be constant? If so, does this mean that marginal cost are equal to average variable cost?

What is endothermic reaction, What is endothermic reaction? 3. Draw a gener...

What is endothermic reaction? 3. Draw a generalised energy graph for an endothermic reaction.

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: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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