PROBLEMS 1. The following data represent 5 points on the supply curve for orange juice: PRICE ($ PER GALLON) QUANTITY (MILLIONS OF GALLONS) 1 100 2 300 3 500 4 700 5 900 and these data represent 5 points on the demand curve for orange juice: PRICE ($ PER GALLON) QUANTITY (MILLIONS OF GALLONS) 1 700 2 600 3 500 4 400 5 300 a. Graph the points of these supply and demand curves for orange juice. Be sure to put price on the vertical axis and
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Faizah Shahudin Contact Number : 8125 E-mail : faizah@leadership.edu.my‚ 1. Yap receives a weekly allowance of $20 from his parents that he uses to purchase two goods: Pokemon cards (which cost $5 per pack) and comic books (which cost $4 each). Draw Yap’s budget constraint. Show what would happen if Yap’s parents lower his allowance to $15 per week. Does the opportunity cost of a comic book change? The budget constraints are shown below. When Yaps allowance falls‚ the budgetconstraint
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Ajay has a budget of Rs 1000 to spend on the two goods. Suppose that he has already bought one DVD and one CD. In addition‚ there are 3 more DVDs and 5 more CDs that he would really like to buy. a. Given the above prices and income‚ draw his budget line on a graph with CDs on the horizontal axis. b. Considering what he has already purchased and what he still wants to purchase‚ identify the three different bundles of CDs and DVDs that he could choose. Assume that he cannot purchase fractional units
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_____________________________________________________________________ Question 1 Suppose that unusually hot weather conditions increase the demand for ice cream. Explain why the price of ice cream will rise to a new market clearing level. Question 2 Use supply and demand curves to illustrate how each of the following events will affect the price of butter and the quantity bought and sold in
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WHAT IS YOUR UNDERSTANDING OF MARKET ECONOMY? Market economy is defined as an economy in which most goods and services are produced and distributed through free markets. DISTINGUISH BETWEEN A CAPITALIST ECONOMIC SYSTEM AND SOCIALIST ECONOMIC SYSTEM. CAPITALIST SYSTEM SOCIALIST SYSTEM Capitalist economy system is an economic system in which the ownership and control of important resources such as industries land and capital are in the hands of the private sector of the economy. Socialist economy
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The following are the questions for the take home quiz. Please answer on separate piece of paper. This is due in class‚ not after class‚ not by the end of day‚ but at the beginning of class on January 6th. This is open book‚ but must be your own work. Please do not work around or interpret this requirement as vague or leaving any room for consulting classmates or other help on this work IN ANY WAY‚ SHAPE‚ OR FORM. It is obvious when students work together or get assistance on assignments like
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CHAPTER 2 THE BASICS OF SUPPLY AND DEMAND 1. Consider a competitive market for which the quantities demanded and supplied (per year) at various prices are given as follows: Price ($ ) Demand Supply (millions) (millions) 60 22 14 80
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Define and explain the use of indifference curves. Why are firms increasingly sensitive to the application of indifference curves in today’s economy? How does one construct and interpret indifference maps for purposes of corporate strategy? Define and explain the use of indifference curves. “An indifference curve illustrates the various combinations of two goods [or groupings of commodities] that would provide equal satisfaction.” i Therefore an indifference cure is a way to graphically show
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= FC‚ where F and C are the two goods available for purchase: food and clothing. a. Graph Juan’s indifference curves for the following levels of utility: 100‚ 200‚ and 300. Juan’s indifference curves for U = 100‚ 200 and 300 are pictured as follows. The general formula for the graph of an indifference curve for a given level of utility‚ U*‚ is F=U*/C (since U* = F x C). For example‚ the indifference curve for U* = 100 is
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Q.1. What are indifference curves? Explain the consumers’ equilibrium under the assumptions of ordinal approach. Utility of goods cannot be measured in terms of précised quantitative term. J. R. Hicks and R.G.D. Allen developed Indifference Curve analysis based on ordinal approach. Indifference curve (IC) is defined as the locus of point which show the different combination of two goods or commodities a consumer is indifferent about the point A or B or C or D. According to this analysis the consumer
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