Please carefully follow the assessment guidelines and include reference(S) in every step of your work.Please give a good presentation structure to answers and make things clear for my understanding.Thank you so much for your continued help. Appreciated. ??
ECONTOO, Summer 2023 Quiz 2 (based on chapters 4 and 6] Due date: Thursday, December 15, 5:00 pm Submission: Use the online submission form in the \"Assessment 1\" Section of the Moodle site. Instructions: Answer all the questions (coverage should be adequate). Answers must be typewritten, graphs can be drawn by hand and inserted in the document. Question 1: (2 mark) Anne Bolts, a rstyear university student, believes that the price elasticity of demand for her economics textbook is relatively inelastic. She argues 'l was told l had to purchase a book written by Hubbard and O'Brien that is required by my instructor. If i wanted to buy a romantic novel, I would have many authors to choose from. Therefore, the demand for romantic novels is more elastic than the demand for my textbook.' Do you agree with her statement? Explain. Question 2 (2 marks) This question relates to the following statements by two managers. Briey explain whether you agree or disagree with manager 2's reasoning: Manager 1.' 'The only way we can increase the revenue we receive from selling our frozen pizzas is by reducing the price. ' Manager 2: 'Reducing the price of a product never increases the amount of revenue you receive. If we want to increase revenue, we must increase price.' Question 3 (2 marks) Refer to Figure below. Calculate the value of the price elasticity of supply between 9 and h and State whether it is elastic or inelastic (use the mid-point formula.) Price $11 0 120 180 Quantity Question 4 (4 marks) Suppose the total cost of producing 40 000 ash drives is $120 000, and the xed cost is $30 000. a. What is the variable cost? b. When output is 40 000, what are the average variable cost and the average xed cost? c. Assuming the cost curves have the usual shape, is the dollar diflerence between the average total cost and the average variable cost greater when the output is 40 000 ash drives or when the output is 60 000 ash drives? Explain. [Total 10 marks]
