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# Question no.

1A:

i.
market demand curve
40

30

price 20

10

0
1 2 3 4 5 6 7 8
10 40 35 30 25 18 15 10 5
20
30
40 appartments

ii. The highest price is \$ 18.
iii. The lowest price is \$15.
iv. A-B-C-D.
v. \$11-15.

Question No. 1 B:
i.

person A B C D E F G H
high price 18 18 18 18 25 18 25 25
low price 16 16 16 16 19 16 19 19

ii. \$ 18 is the highest price, and the price is still at its equilibrium price.

Question No 1C:

(40+35+30+25+18) vi. He will charge \$18 to maximize his revenue. iii. \$ 13. Question No. \$ 18. iii. P1X1+P2 X2=m or P1X1+P2X2≤m or 10X1+5X2=40 ii. person A B C D E F G H Reservation price \$ 45 40 35 30 23 20 15 10 ii. Number 1 2 3 4 5 6 7 8 Price 40 35 30 25 18 15 10 5 Revenue 40 70 90 100 90 90 70 40 ii. \$ 18. 1E: i. \$148. Question No 1D: i. 2A: i. A-B-C-D-F. iii. i. Question NO. iv. iv. m/p2 = 40/5 = 8 units. Landlord revenue will be reduced. ii. E will sublet to F. X-axis: commodity 1 . m/p1 = 40/10 = 4 units iii. Market outcome will remain same. iv. F having reservation price of \$ 18. v. A-B-C-D-F. A-B-C-D-F.

P/1X1+P2 X2=m or 5X1+5X2=40 v. 4 2 1v X 2 4 6 8 m/p1 m*/p1 m/p/1 iv. P/1X1+P2X2=m* or 5X1+5X2=30 Question No. P+2M+3J=180. Price of jam=3 units. So price of meatballs =2 units iii. 2P+4M+6J=360. iv. 180 units. ii. 2 crowns =1 unit of new currency. Y m/p2 8 m*/p2 Budget line at income \$40. No . 6 1v Budget line when price of c1 decreased. v. 2 B: i. Budget line when income decreased to \$30. Y-axis: commodity 2.