Do it on paper sheet. Q2: a): A consumer buys 88 units of a commodity at a price of Rs. 10 per unit; price elasticity ofdemand is -0.5682. Calculate the amount he will buy at a price of Rs. 13 per unit of the commodity.b): How a consumer will achieve optimum level of utility through Ordinal Utility Theory approach?c): Using supply-and-demand graphs show the effect of the following events:1. What happens to the market for Coffee if income of consumer increases?2. What happens to the market for Coffee if Government increases tax on Coffee beans?3. What happens to the market for Coffee if price of Tea increases and on the other hand laborwages decrease in the market?

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Answered: Q2: a): A consumer buys 88 units of a…

Q2: a): A consumer buys 88 units of a commodity at a price of Rs. 10 per unit; price elasticity of demand is -0.5682. Calculate the amount he will buy at a price of Rs. 13 per unit of the commodity.

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter6: Consumer Choice And Demand

Section: Chapter Questions

Problem 8QFR

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Question

Do it on paper sheet.

Q2: a): A consumer buys 88 units of a commodity at a price of Rs. 10 per unit; price elasticity of
demand is -0.5682. Calculate the amount he will buy at a price of Rs. 13 per unit of the commodity.
b): How a consumer will achieve optimum level of utility through Ordinal Utility Theory approach?
c): Using supply-and-demand graphs show the effect of the following events:
1. What happens to the market for Coffee if income of consumer increases?
2. What happens to the market for Coffee if Government increases tax on Coffee beans?
3. What happens to the market for Coffee if price of Tea increases and on the other hand labor
wages decrease in the market?

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