Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I am having trouble in question 1 and 2, if someone can help me out, i will be really grateful. Assignment # 1 Q#1. Suppose

I am having trouble in question 1 and 2, if someone can help me out, i will be really grateful.

image text in transcribed
Assignment # 1 Q#1. Suppose that there were 25 people who had a reservation price of $500, and the 26th person had a reservation price of $200. What would the demand curve look like? Q#2. Originally the consumer faces the budget line plx1 + p2x2 = m. Then the price of good 1 doubles, the price of good 2 becomes 8 times larger, and income becomes 4 times larger. a) Write down an equation for the new budget line in terms of the original prices and income. b) What happens to the budget line if the price of good 2 increases, but the price of good 1 and income remain constant? c) If the price of good 1 doubles and the price of good 2 triples, does the budget line become flatter or steeper? Q#3. Qd= 9-2P Qs= -6+ 3P a) Find Equilibrium Price and Quantity b) Find out which of the following equation represents demand and which represent supply function: Q#4. Q - 10P =40 Q + 30P = 104 Also find equilibrium Price and quantity

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Statistics For Business And Economics

Authors: James T. McClave, P. George Benson, Terry Sincich

13th Edition

134506596, 978-0134506593

Students also viewed these Economics questions