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Micro economics revision

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Micro economics revision
1. Plot the demand function Qd = 60 – 4P.
2. Plot the demand function Qs = 100 + 2P.
3. The annual demand and supply for coffee are given by
Qd = 10,000 – 50P Qs = 20P
Where price is in dollars per 50-kilogram bag and quantity is in thousands of 50-kilogram bags. Calculate the equilibrium price and quantity in this market.

4. Assume a competitive market where demand is given by Qd = 980 – 90P while supply is given by Qs = 200 + 40P. It can be determined that the equilibrium price in this market is 6 while the equilibrium quantity is 440 units.

a. Calculate Qd and Qs at P = 4
b. Calculate Qd and Qs at P = 7

5. Let demand for chicken be Qd = 105 – 5P while supply Qs = 25 + 5P, where P is in dollars per chicken and Q is in thousands of chicken per week. How much will the equilibrium price and quantity change if people are now willing to buy 15,000 fewer chickens at each price as a result of lower beef prices?

6. Lydia owns a noodle stand on Nathan Road in Hong Kong. She is convinced that by decreasing the price of her noodles by half, her total revenues (TR) will double. Explain to her why this would be the case only if PED of her own noodles was -6.0.

7. PED for sushi in Akira’s sushi restaurant in Auckland is estimated at -0.4, and he currently sells 300 servings of unagi (fresh water eel sushi) per week at a price of $9.00 per serving. Calculate the effect on quantity demanded if Akira decides to raise the price to $9.45 per serving. What will happen to his weekly revenues?

8. Chicken with bean sauce currently sells at $7.00 and the weekly revenues for China’s Fantasy Restaurant are $294.00. if cutting price by 70 cents leads to 63 servings per week, what must PED for chicken with black bean sauce be equal to? What is the percentage change in revenues?

9. When Shaw’s, a supermarket in North Dartmouth, Massachusetts, increased the price of whole milk from $0.80 to $1.00, the weekly sales of low-fat milk increased from 25,000 gallons to

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