Problem Collection 3 PDF Essay

ECON 213

PROBLEM COLLECTION 3

Identity: ___Krystal Logsdon_____________________________________ Problem Arranged 3 is usually to be completed by simply 11: 59 p. meters. (ET) in Monday of Module/Week six.

1 . Data for industry for graham crackers can be shown listed below. Calculate the elasticity of demand between following prices.

Price of

crackers

Quantity Demanded (per month)

$3

80

$2. 5

one hundred twenty

$2

160

$1. your five

200

$1

240

$1. 00 - $1. 60: __*_-0. 333__________________________

$1. 55 - $2. 00: __*__-0. 6___________________________

$2. 00 -- $2. 40: ___*_-1_____________________________

$2. 50 -- $3. 00: __*___-1. 66_________________________

If the price of graham crackers is definitely $2. 60 should companies raise or lower all their prices if they want to boost revenue? Explain this in terms of elasticity. *The firm will need to lower their prices. The elasticity of demand boosts.

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ECON 213

2 . Presume the competitive market demonstrated below looks a short work price of $10. Using the graph listed below, identify the following: 


Profit maximizing end result:

*_MC=MR___Q=110________

Approx . mark up over cost ___*__There would be no indicate up over cost___

Over time, the price falls to $7. 50. Why does this happen? *The organization operates at the minimum average total cost (ATC), which at $7. 50 is corresponding to the minor cost.

Selling price, Cost

Precisely what is the new revenue maximizing result? _*_Minimum Average Total Expense (ATC)____Q=90_________________

$12. 50

MC

$10. 00

ATC

P=MR

$7. 50

$5. 00

$2. 50

$0. 00

10 20 30 45 50 60 70 80 90 100 110 one hundred twenty 130

!

Amount

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ECON 213

3. An area hardware store is intending to decide whether to stay open up. They have located that their particular industry is very competitive and profits possess shrunk significantly. Knowing that you have taken an economics training course the owners have asked for your opinion. Draw a totally labeled chart to help you explain the shutdown decision. You should show two graphs in the answer, one particular for the market as a whole, and one for this store specifically. Assume that a store is losing money; however , clarify why they may want to be open for the little while much longer. (NOTE: The answer can be a written reason of your graph. )

*Please see fastened. The earnings and loss are demonstrated on the specific hardware store chart. The total cost is equal to the total of reduction and earnings. The choice to hold their gates open or perhaps close depends on the average variable expense. If expense is greater when ever divided by units created it may not be financially feasible to remain open.

4. What combination of the 2 goods below allows you to your own utility with a budget limitation of $14? Show how you arrived at your conclusion inside the space provided below. Place your final answers around the lines at the bottom of this web page. PRICE sama dengan $0. 60 per jar

PRICE = $2. 00 per bale

Bottles of glue Total Utility (Utils)

Bales of hay Total Utility (Utils)

1

12-15

1

12

2

twenty three

2

twenty-two

3

40

3

thirty eight

4

thirty-five

4

52

5

38

5

seventy

6

forty. 5

6

90

Wine bottles of stuff: _____*__4__________________

Bo?tes of hay: ______*___6_________________

*Please see attached. The minor utility(dollar spent) must 1st be determined. Once the marginal utility can be calculated, break down that by price of each good.

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