Exam 1 Material

Introduction

Calculus Review

Demand, and Supply Model

Elasticities

Consumers' Constrained Choices

Intermediate microeconomics

See attached image.

1) The demand for a coffee is given a : Qd = 12 2P + 3P0, here Qd is the quantity demanded of coffee, , P is the price of coffee, and Po is the price of so e supply of the coffee is given as Q5 = 6 + 4P. a. Calculate the effect of the change in in the price of other good on the equilibrium price and equilibrium quantity using comparative statics. 3) Find the optimal values of X and Y where U = XY3 is maximized given the constraint 2X + Y = 30.1) The demand for a coffee is given as: Qa = 12 - 2P + 3P, where Qa is the quantity demanded of coffee, , P is the price of coffee, and Po is the price of some other good. The supply of the coffee is given as Qs = 6 + 4P. a. Assuming P = $1.5 and P. = $1. Calculate the cross-price elasticity of demand between coffee and the other good and interpret.4) The demand for a good is given as: Qd = 100 6P 3Y, Where Qd is the quantity demanded, P is the price, and Y is personal income. The supply of the good is given as Q5 2 60 + 4P . If Y = $5 a. Calculate the effect of the change in in the income on the equilibrium price and equilibrium quantity using comparative statics. 10Y f (O\\/ P 2) Suppose the demand function is given as (201 P2 . a. Calculate the slope of the demand curve. {are a QQAR 10Y 2) Suppose the demand function is given as Q = P2 c. What is the income elasticity of demand?4) The demand for a good is given as: Qd = 100 6P 3Y, where Q, is the quantity demanded, P is t 14.2-7 - and Y is personal income. The supply of the good is given as Q = 60 + 4P . If @ b. Calculate income elasticity of demand at the price e-d interpret the value. \\ 2) Suppose the demand function is given as Qd . [ D / P b. What is the price elasticity of demand