Assignment on Microeconomics

Added on - 21 Apr 2020

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Running head: MICROECONOMICSMicroeconomicsName of the StudentName of the UniversityAuthor Note
1MICROECONOMICSAnswer1. (a)ClothingAnswer2. (b)Because there are many close substitutes for Werther’sAnswer3. (a)Total revenue would increase by $1200 and demand would be elastic.Answer4: (c)It gets flatter and the price elasticity of demand will eventually be greater than 1.Answer5: (c) It first increases then decreases.Answer6: (c) ElasticAnswer7: (b) DiamondsAnswer8: (a) Negative, and therefore the good is an inferior goodAnswer9: (b) -2.33Answer10: (b) Not very responsiveAnswer11: (b) It is 1.74 and supply is elasticAnswer12: (d) 1.63
2MICROECONOMICSAnswer13: (b) There was a reduction in the amount of oil supplied and a world-wide oilembargo.Answer14: (a)An equitable outcomeAnswer15: (b) A price ceilingAnswer16: (c) A surplus of 40 unitsAnswer17: (b) A shortage of computersAnswer18: (a) $5.00Answer19: (a) Free gasoline given to people as an incentive to rent a carAnswer20: (b) Quantity supplied to fall and quantity demanded to rise
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