e) Who will benefit most from this new price?Why? What is the new equilibrium price and output? When the price of a product is increased 10 percent, the quantity demanded decreases 10 percent. Suppose the demand and supply curves for durian in Sabah are given by the following equation. 2. The table below shows demand and supply Labor market in Malaysia for year 2012. Microeconomics is more about single factors and the impact that individual decisions have than broad, sweeping economic policy. Define the price elasticity of demand. Use the matrix below to answer the following questions: A) What is John's dominant strategy? Most of the materials in this book were developed to fit into Polytechnic’s Microeconomics syllabus. 2. E 8. Excellent examples and case studies are provided to promote further understanding are provided in this tutorial book. Microeconomics. (Hint: Price Elasticity of Supply) 20, Tutorial Exercise 21 (CLO 1) 1. (Hint: Define Elasticity of Demand and describe the Price Elasticity of Demand Formula) Tutorial Exercise 2 (CLO 1) 1. The following are illustrative examples of microeconomics. (Hint: Factor Influencing Supply) Tutorial Exercise 11 (CLO 1) 1. d) At what stage of production will a rational producer choose to produce? The following is the market demand and supply schedule at each price level for stingray fish at Melaka Price (RM) Quantity demanded Quantity supplied (Per (Per Kg) Kg) 4 70 12 8 60 18 12 50 24 16 40 30 20 30 36 24 20 42 a) Derive demand and supply function. _____ government plays an active role in the economy to insure economic strength and social justice k. _____ eventually government will not be necessary l. _____ government should avoid interfering in the economy n. _____ individuals and groups can start their own businesses o. The following table shows the production data for Kinabalu Plant Sdn. The following is the market demand and supply schedule at each price level for High 5 chocolate bread Price (RM) Quantity demanded Quantity supplied (Per (Per packet) packet) 0.70 150 55 1.00 135 70 1.30 120 85 1.60 105 100 1.90 90 115 2.20 75 130 a) Derive demand and supply function. d) To protect the welfare of society, government imposing RM0.90 per packet. b) What is the maximum output? What is the definition of elasticity? Using a diagram, discuss this statement. b. This book provides students with a basic knowledge of essential microeconomic principles work as tools in understanding topics of microeconomics. Assume that when price of goods x is RM 10, quantity supply is 50 units and quantity demand is 100 units. b) Using demand and supply function find market equilibrium price and quantity for stingray fish in Melaka. e) Why is the price of RM 50, not the equilibrium price? b) Sketch the supply curve. Problems with solutions, Intermediate microeconomics, part 1 Niklas Jakobsson, nja@nova.no Katarina.Katz@kau.se Problem 1. What are the three basic questions that an economic system must answer? (Hint: Interpret the effect of market equilibrium changes to the price and quantity equilibrium) Tutorial Exercise 25 (CLO 3) 1. Calculate the price elasticity of demand. b) Draw a diagram of total product, average product and marginal product in the same diagram. (Hint: Income Elasticity of Demand and Use of Income Elasticity of Demand) Tutorial Exercise 12 (CLO 1) 1. Calculate the cross elasticity of demand of the good X with A and B, when the price of good X increases from RM10 to RM 20. b. _____ government ownership of all businesses p. _____ businesses operated for the benefit of the people q. Price (RM) Quantity Demanded (Units) Quantity Supply (Units) Household Market Individual Market demand demand supply supply 0.50 20 8 0.80 18 12 1.10 16 16 1.40 14 20 1.70 12 24 Assume that there are 6 households purchasing and 9 sellers selling KK Cool drinking water in Tuaran, Kota Kinabalu. (Hint: Interpret the effect of market equilibrium changes to the price and quantity equilibrium) Tutorial Exercise 26 (CLO 3) 1. The following payoff matrix depicts the possible outcomes for two players involved in a game of volleyball. Practice. (Hint: Market Equilibrium Process) 37, 5: PRODUCTION THEORY Tutorial Exercise 1 (CLO 1) 1. Is this statement true or false? Define floor price. You can publish your book online for free in a few minutes. Assume the following possible combinations of car and TV’s that could be produced yearly by Japan. Explain with appropriate example. The supply and demand schedule is as follows: P(RM) Quantity Supplied Quantity Demanded 20 30 0 18 25 5 16 20 10 14 15 15 12 10 20 10 5 25 8 0 30 a) What is the equilibrium price and quantity? This book represents an extended and thoroughly revised version of a collection of lecture related exercises. ACKNOWLEDGMENTS First and foremost my gratitude and thanks to almighty God for making this effort possible. _____ value competition and hard work c. _____ public and private ownership of the means of production d. _____ public ownership of the means of production e. _____ price of goods and services are determined by government 2, f. _____ price of goods and services are determined by the marketplace g. _____ type of goods and services produced are determined by the government h. _____ quantity of goods and services produced are determined by the marketplace i. (229 Documents), ECF 5953 - Economics c) Suppose demand for scrap metal change Q d = 27 – 0.2p due to economy recession. Elasticity of … Indicate the stages of production. Use a diagram and provide a short, 6. If they lower the price to RM7.00, sales increase to 90 books per month. (Hint: Demand Curve and Supply Curve) 10, 3: PRICE ELASTICITY OF DEMAND AND SUPPLY Tutorial Exercise 1 (CLO 1) 1. The production possibilities curve (PPC) below is used to explain the basic economic concepts of scarcity, choices and opportunity cost. Price Quantity Demand 1 2 3 4 2. With this price what will occur in market for High 5 chocolate bread, is there a surplus or shortage? a) Find the equilibrium price and quantity. Why? 2. 44. Technology for gun improve (Hint: Production Possibilities Curve) Tutorial Exercise 12 (CLO 1) 1. (Hint: Market Equilibrium Process and Government Intervention in the Market) 30, Tutorial Exercise 15 (CLO 1) 1. If the price of a ticket to this event increases by 10 percent, the quantity of tickets demanded will Increase by 10 percent. Price of Plate Quantity demand (unit) (RM) Plate Cup Bowl 5.00 40 20 30 6.00 25 15 X a) Calculate the Price Elasticity of Demand for plate if price decrease from RM6.00 to RM5.00. What is the price elasticity of demand for houses. Define microeconomics 2. Suppose the market for Chicken is currently in equilibrium at a price of RM9.50 per kg. No change in An increase in A Decrease in Supply Supply Supply No change in Demand An increase in Demand A Decrease in Demand (Hint: Interpret the effect of market equilibrium changes to the price and quantity equilibrium) 34, Tutorial Exercise 21 (CLO 3) Demand curve DL in this figure represents the demand for labor services by business firms, and SL represents the supply of labor services offered by households. It is expected that you prepare the answers to these questions. Price (RM) Quantity 1 2 3 4 2. c) Dose the firm operate in short run or long run? a) An decreases in price of Honda City b) An increase in population and income c) An improvement in technologies to produce proton Preve d) An decreases in cost of production of Proton Preve e) The consumers expect that the price of Proton Preve fall in future due to new tariff. left, right or no shift) in each of the following cases? Quiz 2. Using a diagram, explain how changes in technology affect the supply curve. - Explain why? Money wage rate We is the market-clearing wage rate, but Wm denotes the minimum money wage rate imposed on this labor market by federal law. b) Assume that demand function change to Q d = 60 – 2p, calculate the new equilibrium price and quantity. Bhd. c) Over what range of labor input is marginal product smaller than average product? Using a diagram, explain how market equilibrium is reached in the event of excess supply in the market. (__________) d) The federal government has created a buyers’ market in the labor market. Draw the new PPC on the same diagram. Bhd. There are two major divisions of economics, discuss the two major divisions of economics with appropriate example. Money wage rate SL Wm We DL Quantity Labour L1 L0 L2 a) The minimum money wage rate is an example of a price floor. 2. 1: INTRODUCTION TO MICROECONOMICS Tutorial Exercise 1 (CLO 1) 1. of Workers Total Product Marginal Product Average Product per day 0 0 1 7 2 11 3 35 4 5 5 8 6 36 a) Fill in the table above. (Hint: Market Equilibrium Process) Tutorial Exercise 2 (CLO 1) 1. (Hint: Cross price Elasticity of Demand and Use of Cross price Elasticity of Demand) Tutorial Exercise 14 (CLO 1) 1. Suppose the market rate of interest on car loans declines substantially in July 2012. In this range of prices, demand for this product is (Hint: Apply Price Elasticity of Demand Formula to Find the Elasticity Value and Illustrate Degree of Price Elasticity of Demand) Tutorial Exercise 4 (CLO 1) 1. What combination of pizzas should you buy in order to maximise your utility? States 3 basic economic concepts. (Hint: Individual and Market Demand) 6, Tutorial Exercise 3 (CLO 1) 1. Discuss how the war in oil-producing countries could affect the supply of oil in an oil importing country. d) Why is the price of RM 30 not the equilibrium price? What is the different between fixed input and variable input? Explain. e) Price of Samsung Galaxy S4 decrease. 6. From the diagram, determine the equilibrium quantity and equilibrium price. Price (RM) D S 4 Floor price 3 E S D Quantity (units) 60 a) What will be happen in the market when government imposed floor price at price RM4? CONTENT Chapter 1 Covers Introduction to Microeconomics which focuses on microeconomics studies as limited, smaller area of economics, including the actions of individual consumers and businesses, and the processes influencing their economic decisions in buying, selling, businesses charge for their goods and services rendered. Why? Winter 2020, ECF 1100 Chapter 2 Presents about the Demand and Supply Theory as tool for understanding the determination of the price for the quantity of a good to be sold in the market. Determine the market equilibrium quantity and price. c) Based on your answersin the questions (b), show the effect on demand curve, price and the equilibrium quantity. Would this good is normal, inferior or luxury goods? B 4. (Hint: Market Equilibrium Process) Tutorial Exercise 5 (CLO 1) 1. Define demand and demand curve 2. left, right or no shift) in each of the following cases? Why? e) At what level prices is the demand for double story house is elastic? b . - Q d = 63 – 4p Qs = 3 + 2p Where Qd = quantity demanded (bottle) Qs = Quantity supplied (bottle) P = Price (RM) 26, Price (RM) Quantity demanded (units) Quantity supplied (units) 4 6 8 10 12 14 a) Complete the following table: b) Using graph paper, determine the market equilibrium quantity and price (Hint: Market Equilibrium Process) Tutorial Exercise 10 (CLO 1) 1. With aid of diagram explain the relationship between price elasticity of demand and total revenue a) perfectly elastic b) inelastic c) Unitary elastic d) Elastic e) Perfect elastic 2. Britannica Explains In these videos, Britannica explains a variety of topics and answers frequently asked questions. Use supply and demand analysis to predict the impact of the interest rate decline on the prices of cars and the quantity sold. State the three methods to determined equilibrium price and quantity. 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