Calculate the price elasticity of demand for a good when its price increases from $10 to $12 and the quantity demanded decreases from 100 to 80 units. Suppose the market demand and supply curves for a good are given by Qd = 500 - 2P and Qs = 3P - 100. Find the equilibrium price and quantity. A firm has total fixed costs of $1000 and variable costs of $5 per unit. Calculate the firm’s average total cost when it produces 100 units. Suppose a consumer has an income of $1000 and can buy two goods: X and Y. The price of X is $10 per unit and the price of Y is $20 per unit. Draw the consumer’s budget constraint.

Ответ:

To calculate the price elasticity of demand, we use the formula:

Price Elasticity of Demand = (% change in quantity demanded) / (% change in price)

The % change in quantity demanded is:

((100-80)/100) * 100 = 20%

The % change in price is:

((12-10)/10) * 100 = 20%

Therefore, the price elasticity of demand is:

20% / 20% = 1

To find the equilibrium price and quantity, we need to set the quantity demanded equal to the quantity supplied:

500 - 2P = 3P - 100

Solving for P, we get:

5P = 600

P = 120

Substituting P back into either the demand or supply equation, we get the equilibrium quantity:

Q = 500 - 2(120)

Q = 260

Therefore, the equilibrium price is $120 and the equilibrium quantity is 260 units.

The average total cost (ATC) of producing 100 units is:

ATC = (Total Fixed Cost + Total Variable Cost) / Quantity

ATC = ($1000 + ($5 * 100)) / 100

ATC = $15

To draw the consumer's budget constraint, we need to calculate the maximum quantities of X and Y that the consumer can afford given their income and the prices of the two goods. The budget constraint is a straight line with a slope equal to the ratio of the prices of X and Y (-10/20 = -1/2) and intercepts on the X and Y axes equal to the quantities of X and Y that the consumer can afford with their income ($1000).

At a price of $10 per unit for X and $20 per unit for Y, the consumer can afford:

100 units of X (100 * $10 = $1000)

50 units of Y (50 * $20 = $1000)

Therefore, the budget constraint is a line that goes through the points (100,0) and (0,50), with an equation of:

10X + 20Y = 1000

We can plot this line on a graph with X on the horizontal axis and Y on the vertical axis, and shade the area below the line to represent the combinations of X and Y that the consumer can afford. Any point on the line represents a combination of X and Y that exhausts the consumer's budget

Ответ:

10$ =253 grven 3/6×7÷10=π9