Purchase Solution

Microeconomics questions about Supply, Demand, Equilibrium

Not what you're looking for?

Ask Custom Question

The questions are in the attachment files 1 and 2.

---
Question 1

Define or explain the following economic terms:

a) Quantity demanded
b) Quantity supplied
c) Market equilibrium
d) Consumer surplus
e) Price elasticity of demand

Question 2

By using the midpoint formula, calculate the price elasticity for each of the following changes in demand by a household.
______________________________________________________________________________
Demand for P1 P2 Q1 Q2
______________________________________________________________________________

(a) Long-distance phone service $0.25 per min. $0.15 per min. 300 min. 400 min.
per month per month

(b) Orange juice 1.50 per qt. 1.90 per qt. 14 qt 12 qt
per month per month
_______________________________________________________________________________

Question 3

Do you agree or disagree with each of the following statements? Briefly explain your answers.

(a) The price of a good rises, causing the demand for another good to fall. The two goods are therefore substitutes.
(b) If demand increases and supply increases at the same time, price will clearly rise.
(c) A shift in supply causes the price of a good to fall. The shift must have been an increase in supply.
---

Attachments
Purchase this Solution
Solution Summary

The solution includes excel and word files that defines some microeconomics terms as well as a solution to a problem asking for equilibrium quantity and price together with a graph.

Solution Preview

Please see the attached files for the complete solution:

Define or explain the following economic terms:

a) Quantity demanded

The total amount that an individual or a group of individuals would choose to buy at a particular price

b) Quantity supplied

The total amount of a good or service ...

Solution provided by:
Manal Elkhoshkhany, MBA
Education
  • BA, Ain Shams University, Cairo Egypt
  • MBA, California State University, Sacramento
Recent Feedback
  • "ty i have more need help with"
  • "ty i have jmore i need help with"
  • "great help"
  • "excellent help"
  • "Very helpful and easy to understand."
Purchase this Solution
Free BrainMass Quizzes
Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

View More Free Quizzes
Related BrainMass Solutions

  • Question about Microeconomics and Macroeconomics

    One more difference is that in microeconomics, the equilibrium happens when the quantity demanded equals the quantity supplied. In macroeconomics, on the other hand, equilibrium occurs when the aggregate demand equals aggregate supply. 2.

  • Economics

    Please state the law of demand and law of supply and explain how the law of demand and the law of supply interact to bring about equilibrium. 3.

  • Microeconomics Assignment Questions: Supply & Demand

    This solution gives the answers to common microeconomics assignment questions on the theme of supply and demand.

  • equilibrium price

    This posting helps answers a microeconomics question about demand and supply. The equilibrium price is exemplified in this solution. Brief solutions are given for each of the problems.

  • Deriving Supply and Demand and analysis of a price ceiling.

    210327 Microeconomics problem set - Derive the demand and supply functions for each separate market. show effects of a price ceiling on the market. For the data below answer the following questions. Cedar City- 1 St.

  • equilibrium wage and the equilibrium quantity of labor

    253065 Microeconomics: Demand and Supply Hi there, I need some help with these questions. Explain how each of the following events affects the equilibrium wage and the equilibrium quantity of labor (assume all else is constant with each event).

  • Microeconomics in Tea and Soft Drink Markets

    608882 Microeconomics in Tea and Soft Drink Markets 1. Suppose news reports predicted that the price of coffee was about to rise by about 20%. What could be the causes of the predicted price increase?

  • Microeconomics: Movement along and shift of the demand curve

    258830 Microeconomics: Movement along and shift of the demand curve What is the difference between a movement along and shift of the demand curve?

  • Supply and Demand Simulation

    4)When you have a market in which neither suppliers nor consumers collude and in which prices are free to move up and down, the forces of supply and demand interact to arrive at equilibrium How may you apply what you learned about supply and demand

  • Demand Curve

    In the above graph, a rise in demand is indicated by shifting of demand curve from DD to D'D'. Supply curve remains unchanged. We find that new equilibrium price is P' and new equilibrium quantity is Q'.

View More Related Solutions