Principles of Economics II – Microeconomics Homework #1: Ch 4~6 and Article Questions Article Questions Please download the associated article. “Fare Hike...” 1. Based on the article‚ are taxi fares more elastic or less elastic for drivers? Passengers? How do you know? Give at least 3 reasons. 2. If given a chance‚ do you think that cab drivers would have raised the amount that high? Why/not? Chapter Questions Ch 4 Questions: 1. Consider the market for eggs. For each of the events
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2. Reducing Tariff barriers leads to trade creation Trade creation occurs when consumption switches from high cost producers to low cost producers • The removal of tariffs leads to lower prices for consumers and an increase in consumer surplus • Imports will increase • The govt will lose tax revenue • Domestic firms producing this good will sell less and lose producer surplus • However overall there will be an increase in economic welfare • The magnitude of this increase depends upon the
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is made through the free interaction of the market forces of demand and supply. (i.e the price mechanism). In the free market‚ it gives private ownership over all factors. There are self-motives‚ where consumers are out to maximise satisfaction‚ producers are assumed to be profit motivated and resources owners would want to maximise return on resources. Thus they rely on the price mechanism to allocate resources. The free market which uses the price mechanism may appear to be
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decimal places). b. How much consumer surplus do consumers receive when Px = $45? $91.00 c. How much consumer surplus do consumers receive when Px = $25? $95.00 d. In general‚ what happens to the level of consumer surplus as the price of a good falls? The level of consumer surplus increases as the price of a good falls. ebook & resources Demand Market Equilibrium Worksheet Learning Objective: 02-02 Calculate consumer surplus and producer surplus‚ and describe what they mean. The
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usually set a price ceiling and price floor for producers to protect them as a whole. For example‚ if there are farmers importing tomatoes from multiple countries into the United States‚ there will be a surplus. There is a surplus when the supply of the imported goods is greater than the demand. As a result‚ a country export and import levels should be controlled by government policies. If there were no trade regulations applied to imports‚ the surplus may turns into deficit‚ negative affecting farmers
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ECO/212 Final Examination Study Guide This study guide prepares you for the Final Examination you complete in the last week of the course. It contains practice questions‚ which are related to each week’s objectives. Highlight the correct response‚ and then refer to the answer key at the end of this Study Guide to check your answers. Use each week’s questions as a self-test at the start of a new week to reflect on the previous week’s concepts. When you come across concepts that you are unfamiliar
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LECTURE 2 CALCULUS INTEGRATION 2.3 INTEGRATION References • • • Barnett‚ Ziegeler and Byleen 2000a‚ Chapters 6 and 7. Chiang and Wainwright‚ Chapter 14. Sydsaeter and Hammond‚ Chapter 9. Antiderivatives and Indefinite Integrals Many operations in mathematics have reverses – compare addition and subtraction‚ multiplication and division‚ and powers and roots. The reverse of differentiation is antidifferentiation. A function F is an antiderivative of a function f if . ‚ ‚ then the functions differ
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to protect the Australian car industry? Name: Student ID: Tutor: Augustine Conteh Date due: Week 11 Monday 5pm Word count: 1399 The Australian automotive industry is fundamental within the manufacturing industry. As a viable domestic producer‚ the automotive industry is a vital source of employment and economic research and development. However‚ with the accessibility and low cost of imports and the stability of the Australian dollar‚ the automotive industry has suffered major cutbacks
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Explain‚ and illustrate using graphs‚ whether you think a perfectly competitive industry or a monopoly industry leads to more efficient outcomes for an economy. RESEARCH ESSAY Microeconomics is defined as a study of how economic decisions are made by individuals and groups along with the range of factors affecting those decisions. In relevance to this‚ the analysis of perfect competition and monopoly regarding efficiency is considered one of the most core basis to the understanding of Microeconomics
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ECON 201 Introduction to Microeconomics Lecture Notes Second Edition HANY FAHMY E. info@hftutoring.com w. www.hftutoring.com T. 514 979 4232 This material is copyrighted and the author retains all rights. No part of this material may be reproduced or transmitted in any forms or by any means‚ or sorted in a data base or retrieval system without the prior written permission of HF Consulting. COURSE PACKAGE INFORMATION This is a free copy of the first part of ECON 201 course package
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