Explain the following questions.
) Determine the inverse demand function. 0) Determine the vertical intercept of the inverse demand function. )Determine the horizontal intercept of the inverse demand function. d) Determine the slope of the inverse demand function. 2) Draw the consumer's inverse demand curve in Figure 1 provided in the answer booklet. Determine the market demand curve if there are 1000 consumers with the demand function Q = 40 - 5P 2) The demand functions for consumers 1, 2, and 3 are respectively Q1 = 60 - P, Q2 = 80 - 2P, and Q3 = 80 4P ) Determine the inverse demand function for each consumer. 0) Determine the vertical intercept for each inverse demand function. Determine the horizontal intercept for each inverse function. d) Determine the slope for each inverse demand function. 2) Determine the market demand curve. Draw the inverse market demand curve in Figure 2 provided in the answer booklet. 8) A consumer's demand function for good x is Qx = 8 - Px - Py/2 + 1/100 with Ox representing the quantity demand for good x, Px the price for good x, Py the price for good y, and I the consumer's income. ) Draw the inverse demand curve in Figure 3 provided in the answer booklet if Py = 2 and I = 100. 0) Draw the inverse demand curve in Figure 3 provided in the answer booklet if Py increases from 2 to 4 and I = 100. () Draw the inverse demand curve in Figure 3 provided in the answer booklet if I increases from 100 to 200 and Py = 2 1) A consumer's demand function for good x is @x = 50 - Px + 3Py/2 - Pz + 1/125 with Qx representing the quantity demand for good x, Px the price for good x, Py the price for good y, Pz the price for good z, and I the consumer's income.1. The demand curve for hotel rooms is Qd = 1000-5Pp and the supply curve is Qs = 200+3Ps, where Qd is the quantity demanded and Qs is the quantity supplied, Pp is the price paid by buyers and Ps is the price received by sellers. Using the information above, find equilibrium Price and Quantity for Hotel Rooms 2. In Heartland, the minimum wage is currently $4.00 per hour and the fast-food industry is the only industry that pays the minimum wage. 50% of the workers in the industry are between 16 and 21 years old. The president of Heartland, concerned about decreasing the proportion of families with incomes below the poverty line, proposes increasing the minimum wage by 20%. a. Assume the labor market for low skilled workers is perfectly competitive. Explain why an increase in the minimum wage might reduce employment in the fast-food industry. b. Use supply and demand analysis to describe the likely effect of this increase in the minimum wage on the price and quantity sold of meals at fast-food restaurants? c. If an increase in the Minimum Wage will cause the Equilibrium Quantity of Minimum Wage Labor to decrease, would you then suggest that the Minimum Wage should not be increased? Why or Why not?Problem 2 (30 pts) Explain your answers! The market demand function for computer games is qD (p) = BOOSp and the market supply function is qs(p) = 4}). (a) Find the equations of (express price in terms of quantity) and plot the demand and supply curves corresponding to the given market demand and supply functions. Find the market equilibrium price and quantity p* and if". (b) Find the producer's surplus and consumer's surplus at the equilibrium. (c) What is the price elasticity of demand at the equilibrium point? ((1) Derive the equation of the marginal revenue curve and compute the marginal revenue at the equilibrium point in (a). (e) Given the demand function, at what price would total revenue be maximized? (f) Suppose a quantity tax of $5 per game is imposed on the computer game suppliers. What is the new equilibrium price paid by the consumers? What is the new equilibrium price received by producers? How much is the tax revenue? How much is the deadweight loss of the tax? Use a graph to explain your answers. Problem 3 (15 pts) Explain your answers! Suppose the production function of a rm is given by f (K ,L) = SK 1/4111\a. be Justified by a compelling governmental reason for the limitation a. be no broader than necessary to protect the governmental interest c. provide remedies for violations of the right to vote 37. Laws that treat persons differently based on a suspect classification such as race are subject to a, the rational basis test b. intermediate scrutiny to ensure the different treatment substantially relates to an important government interest c. strict scrutiny to determine whether the different treatment necessarily relates to a compelling government interest 38. In an area where federal and state governments hold concurrent powers, the state law is valid unless it directly conflicts with the Constitution. True or False? 39. An international business must comply with the following laws (Circle all that apply) a. Its own state laws b. Federal import and export regulations C. Applicable laws of the countries in which it does business d. Local laws in the cities in which it does business 40. Public International law governs relations among governments and international organizations. True or False? 41. The General Agreement on Tariffs and Trade (GATT) (Circle all that apply) a. eliminates trade barriers among member nations b. permits internal taxes on imports once import taxes have been paid C. binds U.S. companies engaged in international trade with member nations d. has its own dispute resolution body called the World Trade Organization (WTO) 42. The WTO has the power to impose punitive trade sanctions for noncompliance with its orders. True or False? 43. In the field of international trade, the United Nations Convention on Contracts for the International Sale of Goods (CISC) Is most like a. common law contracts precedent b. The Uniform Commercial Code C. a United Nations convention d. a Supreme Court decision 44. International merchants may opt out of CISC. True or False? 45. CISC requires parties to act in _ when unforeseen circumstances affect the performance of a contract
