1.Suppose the supply function for product X is given by Qsx=50+0.5Px5PzQsx=50+0.5Px5Pz.

How much of product X is supplied when Px=$250 and Pz=$10Px=$250 and Pz=$10?

2. Does the decision to lower the interest rate to decrease the amount of unemployment relate to microeconomics or macroeconomics? Explain.

3. What is the law of supply, and what are the factors that cause shifts in supply?

4. When there is a rightward shift in the supply curve, with a negatively-sloped demand curve, total revenue

5. Discuss the following statement: Since we are all consumers, and since lower prices increase the consumer surplus, lower oil prices benefit all consumers.

Are there some segments that might disagree with that? Who do you suppose might have something to gain from higher oil prices?

6. Why is producer surplus maximized under perfect price discrimination?

7. Discuss the effect of tax on consumer surplus and producer surplus.

8. Define consumer and producer surplus.

9. Explain the effect of shifts in demand curve on consumer and producer surplus.

1o. Explain the future of microeconomics