Question 1Table 1: Consumption of Bread and FlourConsumer Consumption Consumption12345of Breadof Flour1090026205615101205075A supermarket has employed you to do some analysis of their customers' shopping.They have provided you with the data in Table 1. Based on the data in Table 1,explain what preference type you would use in your analysis.(10 marks)

To analyze the preferences of the customers based on the provided data in Table 1, we can employ…

Answered: Question 1 Table 1: Consumption of…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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(c) Obviously, something is wrong. Can you explain what it is? (Hint: Think of basis, or reference. For example, if you had an investment that appreciated 100% in value one day, and you lost 100% of your investment the next, would you still have any money left?)
BN5 (3) (a) Case: Recycling services for private businesses can be purchased from many firms in a competitive market. The Supply and Demand are: Ps = 1000 + 20Qs Pd=4000-5 Qal A Government is interested in promoting recycling by subsidizing the Cost of Services. Question: What is the Equilibrium Price and Quantity of Recycling Services?
Each term (3 months) the current group of economics students completed a questionnaire as to how much they would spend on new purchases compared to how much they would save/pay off bills, if they suddenly and unexpectedly received a check for $1,000. The average MPC is shown in the table below. Month in which student poll was taken Average of students’ responses as MPC March 0.41 June 0.30 September 0.22 December 0.56 What do these MPC’s imply about the students’ thinking over the course of the year? (Enter response here.) What is likely happening in the economy during the same period of time?
Q.3 - An economist has estimated demand of D = 1000 − P and Supply of S = 400 + 10R for onions, where R is the number of days of rainfall. (a) Plot the demand and supply curves. (b) Show the equilibrium quantity and the equilibrium price on the graph. (c) Use Algebra to determine the equilibrium price and quantity (d) Use a new graph of demand and supply curves to show the effect of an increase in rainfall
PROBLEM (1) Suppose a consumer has just enough money to afford the bundle of 3 apples and 2 oranges, and similarly she also has just enough money to afford the bundle of 2 apples and 4 oranges. (a) Denoting the number of apples with x and oranges with y, plot the two given bundles on a graph, and calculate the relative price of apples; px/ py. (b) If she buys only apples with her budget, how many can she buy? If she buys only oranges, how many can she buy? Write down the budget equation for the consumer. (Notice that knowing two points on the budget line, you can write down the budget equation, even though you weren't given the prices nor the income explicitly!) (c) Suppose MUx = 20 and MUY = 30 at some point on the budget line. Is she maximizing utility by choosing this bundle? If not, should she buy fewer apples (and more oranges), or more apples (and fewer oranges), to increase her utility? (d) Forget about (c); instead, you learn that her utility function is u(x,y) = Axy³. What is…
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OCHESTER 1. (12 points) Supply and Demand for Riesling The Finger Lakes region of New York State is known for its Rieslings. The demand function for bottles of wine from this region (in 100,000s) has two variables average annual income of purchasers. The functional form is: Qd=-2Pd-5+0.0011, where the price of wine and the Qd is quantity sold, Pd is the price of one bottle of wine, and I is equal to average income. Assume average annual income today is $30,000. A) (3 points) Calculate and plot the demand curve. B) (3 points) Calculate and plot the demand curve for I = $35,000 on the same graph as used in part a. == C) (6 points) Now assume a supply curve, Qs = 25P, - 175. Plot the supply curve on the same graph. Compute the equilibrium prices and quantities for the two demand curves.
The following table shows worldwide sales of a certain type of cell phone and their average selling prices in 2012 and 2013. Year 2012 2013 Selling Price ($) Sales (millions) 928 1,144 375 335 (a) Use the data to obtain a linear demand function for this type of cell phone. (Let p be the price, and let q be the demand). q(p): -5.4p + 3185 X Use your demand equation to predict sales if the price is lowered to $255. 1808 x million phones (b) Fill in the blank. For every $1 increase in price, sales of this type of cell phone decrease by 5.4 million units.
Table 1: Consumption of Bread and Flour Consumer Consumption Consumption 1 2 3 4 5 of Bread 100 26205 6 15 of Flour 10 90 120 50 75 1202 A supermarket has employed you to do some analysis of their customers' shopping. They have provided you with the data in Table 1. Based on the data in Table 1, explain what preference type you would use in your analysis.
3. (10 points) 60 50 40 Quantity of Y 30 20 20 B 10 = 11 III A Z M 0 10 20 30 40 50 60 70 80 Quantity of X Suppose that a consumer has the indifference map shown above. The relevant budget line is LZ. The price of good Y is $10. (a) What is the consumer's income? Please show your calculations. (b) What is the price of good X? Please show your calculations. (c) Write the equation for the budget line LZ. (d)) What point in the graph will lead to utility maximizing with the budget line LZ and the indifference curves as shown above? Please label this point as “C” and give an explanation. (e) Please explain why the consumer will not choose point A or point B.
4. (0,.7 or 10) Provide an example of product differentiation using any industry you want (e.g., fast food, shoes, clothing, etc.)

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