Homework answers / question archive / For any numerical question, round up to the second decimal

For any numerical question, round up to the second decimal

Economics

Share With

For any numerical question, round up to the second decimal.e.g. when the answer is 100, you should write 100.00 when the answer is 5.234, you should write 5.23 when the answer is 6.235, you should write 6.24 ECON101 HW 2 Name: Student ID: Serial Number: 1. Supply and Demand, Elasticity Consider the market for butter. The demand curve is given by Q" = 300 - 2 x P + 4 x 1, where I is the average income and Pis the price of butter. The supply curve is Q5 = 3P – 25 x PM - 25, where Py is the price of milk. (a) If the average income in Dammam is I = 25 and the price of milk is Px = 1, what is equilibrium in Dammam? The equilibrium price is The equilibrium quantity is_ (b) Suppose that bad weather conditions raise the price of milk to PM = 2. Find the new equilibrium. (Draw a graph to illustrate your answer). The equilibrium price is The equilibrium quantity is Graph: P 0 (c) If the average income in Dammam is I = 25 and the price of milk is rm = 1, what is in own-price elasticity of demand of butter at P=100? ?.
For any numerical question, round up to the second decimal. e.g., when the answer is 100, you should write 100.00 when the answer is 5.234, you should write 5.23 when the answer is 6.235, you should write 6.24 (d) If the price of butter is P - 100 and the price of milk is PM - 1, what is in income elasticity of demand of butter at 1=25 E (e) If the price of milk is P = 4, what is in own-price elasticity of supply of butter at P = 1002 En (h) If the price of butter is P = 100, what is in cross-price elasticity of supply of butter at Px = 10? ??? 2. Price Floor and Ceiling, Tax, Subsidy Consider the market for butter in Saudi Arabia. The domestic demand function is given by Q" = 10 - 2 x P. The domestic supply function is Q$ = 2 x P - 2. (a) Suppose there is a price ceiling of 2 (SAR). i. What is the excess demand or excess supply, if any (how much)? ii. What is the deadweight loss (how much)? (b) Suppose the government is going to charge 1 (SAR) per unit of butter on the suppliers. i. What is the consumer surplus? ii. What is the producer surplus? iii. What is the government revenue? iv. What is the deadweight loss?