Professional Documents
Culture Documents
Individual Assignment 01: ECO111 Microeconomics Class: MKT1609 Name: Nguyen Van Ly Email To
Individual Assignment 01: ECO111 Microeconomics Class: MKT1609 Name: Nguyen Van Ly Email To
Class: MKT1609
Name: Nguyen Van Ly
Email to: thuyvtt@fpt.edu.vn
Individual Assignment 01
Question 1. You can allocate your time for the next four years between studying and
working at a car wash. Each semester you spend studying you can earn 15 credit hours and
each semester you work at the car wash you wash 800 cars. If you have 8 semesters to
allocate, label each of the following on a graph
a. Your production possibilities curve (show below the graph)
b. A point that is unattainable (k đat được) - point A 90 credit hours and 4800 car washes (or
any point on ppc)
c. A point that is efficient - point B 60 credit hours and 3000 car washes
d. Plot and label a point on your graph that represents a decision to take a semester off from both
studying and working - point C 105 credit hours and 5600 car washes (or any point on ppc)
3
Demand
0
100 175 220 Quantity demanded
d. If price in this market is $7, explain the adjustment process that will bring the
market back to equilibrium.
- supply shift left
- demand down
Question 3. You operate your own business selling college t-shirts. The demand
schedule for your t-shirts is as follows: P = 25 - 0.5Q
P=10 => Q=30
P=15 =>Q=20
P=10 =>Q=30
P=a-bQ
P=s+bQ
Q= a-/+bQ
a. Graph the demand curve for your t-shirts.
b. Calculate the price elasticity of demand when price equals $10.
c. In what range does price elasticity of demand fall at $10 (elastic <co gian>,
unit elastic <dvi co gian>, inelastic <k co gian>)?
- inelastic
d. If your goal is to maximize total revenue, how should you change price if you are
currently charging $10?
Question 4.
a.Use the information in the graph below to find price elasticity of supply at point A.
Price Supply
4 A
0 20 30 Quantity Demanded
P = a+bQ
4= x+20y => x=-2
7= x+30y => y=0,3
=>P = -2+0,3Q
E = 4/20 x 1/0,3 = 0,67
4b. Based on the elasticity of supply in part a, if price increases by 10%, by how much
will quantity supplied change?
- the price increases by 10% ,
- the supply increases by 6,7%
- the elasticity = 0,67
4c. What will happen to the price elasticity of supply, in each of the following cases
(becomes more inelastic, more elastic, or does not change)?
i>inputs become easier to transport
- increase S
- decrease D
Become more elastic
ii>new inputs into production of the good are found
-increase S
-decrease D
Become more elastic
ANSWER : C