Microeconomics Answers

The income elasticity is +2.5 and income increases by 20%. Sales were 5000 units, what will they be now?

if qx=25-2.5px+5/3py+0.5I where px=20 py=15 and I=100. what is the cross elasticity of demand

why do competitive firms stay in business if they make zero profit?

Assume a consumer with the utility function
U = U(X, Y) = (X + 2)(Y + 1)
M = 95, Px= 10, and Py= 5
A Set up the consumers’ budget constraint
a. Set up the constrained maximization problem, and derive the first-order conditions.
b. Find the amounts of goods X and Y the consumer will purchase in equilibrium

Qd = 50- 8P
Qs = -17.5 + 10P
a) At the equilibrium price calculate the consumer’ and producers’ surplus.
b) If a price floor of shs 5 is imposed on good X in this market
i) what is the new consumers’ surplus and by how much has it changed?
ii) what is the new producers’ surplus and by how much has it changed?
c) Calculate the transferred surplus. And state from who to whom is it.
d) Calculate the deadweight loss of the price floor

Assume a consumer with the utility function
U = U(X, Y) = (X + 2)(Y + 1) M = 95, Px= 10, and Py= 5
Set up the consumers’ budget constraint

5. Consider the following national income model
Y = C+I+G+X-M
C=0.75(Y-T)
M=0.25Y
I=820
G=960
t=0.3
X=650
Find the equilibrium values of Y, C and M

what is the meaning of Total Cost (TC), Total Variable Cost (TVC),Total Fixed Cost (TFC),Average Cost (AC), Average Fixed Cost (AFC), Average Variable Cost (AVC), Total Revenue (TR), Average Revenue (AR) and Marginal Revenue (MR)

( WITH REFERENCES)

The utility function is:
u(x,y)=32x^0.5+y
The marginal utilities are:
MUx=16x^-.5 MUy= 1 How do I derive the demand functions for x and y?
Thank you!