Microeconomics questions and answers in March 2021

Suppose that a private college offers a variety of (in-person) skills training courses. The college currently offers 12 courses per term, with an average enrolment of 45 students per course, and charg...

In an isolated town, two pizza shops open. Their owners Mario and Luigi are deciding what price to set on the menu. Before the opening night of both stores they discuss their pricing and work out that...

The demand and the supply for pork meat4 in Meatistan are given by QD = 9 - 0.25P, and QS = 2P We assume that the market for pork meat is perfectly competitive. Assume that the Government puts a tax o...

Assume that the Government puts a tax of 10$ per kg on all pork meat consumption. a) Graphically show the effect of the consumption tax on the equilibrium price and quantity. b) Compute the price paid...

The demand and the supply for broccoli1 in Veganstan's closed economy are given by QD = 60 - 2P, and QS = 38P. We assume the market is perfectly competitive. 1: Compute the closed economy equilibrium ...

The demand for pumpkins in Halloweenstan is given by: QD = 60 - 2P 1: Compute the price elasticity of demand first when the quantity of pumpkins demanded is Q1 = 20, and then when the quantity demande...

Suppose the Hookturnistanian Government is considering how much to invest in expanding public transport to reduce traffic congestion. An expert committee has advised the government that the total bene...

Assume that while allowing for free trade with Beefland, Veganstan's policy makers decide to give to all broccoli producers in Veganstan a subsidy of 0.5 $ per kg produced. For Veganstan: a) gr...

For the following questions, we assume that Veganstan's policy makers open up the country's economy for trade. Veganstan's neighbouring country, Beefland, can produce and sell unlimited quantities of ...

Consider the production function Q = f( K, L) = K½L½. a). What kind of production function is this? What is the firm's output when it uses 9 units of labor and 4 units of capital? b). Rou...