Microeconomics Answers

Table 4.6 shows the amount of savings and borrowing in a market for loans to purchase homes, measured in millions of dollars, at various interest rates. What is the equilibrium interest rate and quantity in the capital financial market? How can you tell? Now, imagine that because of a shift in the perceptions of foreign investors, the supply curve shifts so that there will be $10 million less supplied at every interest rate. Calculate the new equilibrium interest rate and quantity, and explain why the direction of the interest rate shift makes intuitive sense.
5% 170 6% 150 7% 140 8% 135 9% 125 10% 110
Table 4.6

Assume pears are sold in a perfectly competitive market, using a supply and demand graph, describe the impact, ceteris paribus, of a bumper crop on equilibrium price and output? In your discussion make sure to explain the process of moving to the new equilibrium output and price.

Examine the following statement
“The constant real income demand curve must have a negative slope.”

If we increase quantity of a commodity or a good will consumer's satisfaction level increase? Here the quantity is NOT CONSUMED by consumer but if he purchase a good more and more of a same commodity what is his level of satisfaction? Will it increase?

If we increase quantity of a commodity or a good, will consumer's satisfaction level increase?

The characteristic feature of indifference curve is that it will not touch the X axis or Y axis. But as a special case it will touch the Y axis if the combination is between Money and Commodity. "If money is taken on Y-axis, then IC curve can touch oy-axis" here we have taken 'money' on Y-axis and 'commodity' on X-axis. Here my doubt is could we use indifference curve for one commodity? If so please explain me with an example.

Why monopolist Marginal revenue is less than the price he has charged for his goods

Slope of budget line= change in y/ change in x and also Marginal rate of substitution= change in y/ change in x. If the definitions are same of both then what is the difference between the two?

Px=2, Py=3
Units- 1,2,3,4,5,6
MUx/Px- 10,9,8,7,6,5
MUy/Py- 8,7,6,5,4,3
In this data,
1) MUx/Px > MUy/Py
2) MUx/Px = MUy/Py
3) MUx/Px < MUy/Py
By data, all entries are like MUx/Px > MUy/Py I mean 10>8, 9>7, 8>6, 7>5, 6>4, 5>3. Then what about MUx/Px < MUy/Py and MUx/Px = MUy/Py?

if QSx=20Px calculate (a) the producer,s supply sechedule (b) producer supply curve (c) what things have been kept constant in this equation