Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!
loader
Add File

Error goes here

Files Missing!

Please upload all relevant files for quick & complete assistance.

Guaranteed Higher Grade!

BUS102 Introduction To Microeconomics

tag 0 Download 7 Pages / 1,626 Words tag 05-08-2021
  • Course Code: BUS102
  • University: Kings Own Institute
    icon

    MyAssignmentHelp.com is not sponsored or endorsed by this college or university

  • Country: Australia

Questions:

Q1:

Table 1 – Production Capacity of Newland.

Use information in Table 1.1 above to answer the following questions:

  1. Using the above figures, map out the Production Possibilities Frontier (PPF) for the production of the Cars and bicycles (Hint!Use Microsoft Excel, for accuracy)
  2. In your own words, while making use of the graph that you have created in part a, explain what the PPF is. Cleary state all assumptions and properties of the PPF.
  3. Newland usually has a demand of 3,000 bicycles and 18,000 cars. Suddenly Newland receives notice that the demand has increased to 4,000 bicycles and 20,000 cars. Discuss and explain at least three possibilities of how Newland could meet that demand. (Hint: State any appropriate assumptions made).

Q2:

Table 2: Demand schedule for computer chips

Price (dollars per chip)

Quantity demanded (millions of chips

 

per year)

200

50

250

45

300

40

350

35

400

30


Part I: Use the demand schedule for computer chips in Table 1 to answer parts (a) and (b) below.

  1. What happens to total revenue if the price falls from $400 to $350 a chip and from $350 to $300 a chip?
  1. At an average price of $300, is the demand for chips elastic, inelastic, or unit elastic? Explain your answer using the total revenue test.

Part II. Use the demand and supply functions expressed by equations (1) and (2) below to answer parts (c) – (f).

Consider the demand function for widgets to be:

QD=100–5P

QS = 5P.

  1. What is the market equilibrium?
  2. Calculate the consumer and producer surplus at the market equilibrium. What is the total surplus?
  3. Now assume that the government sets a rule that the maximum quantity that can be sold is 25 units. If the price in the market is $15, what is the consumer surplus, producer surplus and the deadweight loss? If the price is $5 what is the CS, PS and DWL?
  4. Using equations (1) and (2), sketch the demand and supply diagram and indicate your results from parts (a) – (c). Correctly label the diagram.

Q3:

In 2010, the Australian government imposed a tax on Alcops to reduce teenage binge drinking and alcohol-related harms and hospitalization, and also to raise tax revenue. However, by the end of the financial year no reductions in teenage binge drinking and alcohol-related harm were recorded and, moreover, the revenue raised from the tax was 6% less than predicted.

  1. As an economist, are you surprised about the outcome of the government’s tax policy?Critically discuss. Use the demand and supply model and other appropriate microeconomic tools you have learned in this unit to illustrate your argument.

  2. Who bore a greater burden of the tax, the buyers or sellers of Alcops? Was the outcome of the tax efficient? Explain.

  3. What other policy could the government implement to reduce teenage binge drinking andalcohol-related harm and hospitalization? Briefly explain.
Download Sample Now

Earn back the money you have spent on the downloaded sample by uploading a unique assignment/study material/research material you have. After we assess the authenticity of the uploaded content, you will get 100% money back in your wallet within 7 days.

Upload
Unique Document

Document
Under Evaluation

Get Money
into Your Wallet

Total 7 pages

Cite This Work

To export a reference to this article please select a referencing stye below:

My Assignment Help. (2021). Introduction To Microeconomics. Retrieved from https://myassignmenthelp.com/free-samples/bus102-introduction-to-microeconomics/production-capacity-of-newland.html.

My Assignment Help (2021) Introduction To Microeconomics [Online]. Available from: https://myassignmenthelp.com/free-samples/bus102-introduction-to-microeconomics/production-capacity-of-newland.html
[Accessed 30 September 2022].

My Assignment Help. 'Introduction To Microeconomics' (My Assignment Help, 2021) <https://myassignmenthelp.com/free-samples/bus102-introduction-to-microeconomics/production-capacity-of-newland.html> accessed 30 September 2022.

My Assignment Help. Introduction To Microeconomics [Internet]. My Assignment Help. 2021 [cited 30 September 2022]. Available from: https://myassignmenthelp.com/free-samples/bus102-introduction-to-microeconomics/production-capacity-of-newland.html.


Stuck on Any Question

Our best expert will help you with the answer of your question with best explanation.

question
We will use e-mail only for:

arrow Communication regarding your orders

arrow To send you invoices, and other billing info

arrow To provide you with information of offers and other benefits

loader
250 words
Error goes here

Error goes here

Files Missing!

Please upload all relevant files for quick & complete assistance.

We Can Help!

Get top notch assistance from our best tutors !
Excel in your academics & career in one easy click!

icon

Other Samples

Content Removal Request

If you are the original writer of this content and no longer wish to have your work published on Myassignmenthelp.com then please raise the content removal request.

icon

5% Cashback

On APP - grab it while it lasts!

Download app now (or) Scan the QR code

*Offer eligible for first 3 orders ordered through app!

screener
ribbon
callback request mobile
Have any Query?