microeconomics

Short Question 1

If the price of meat goes down, what will happen with the equilibrium price and quantity of hamburgers?

Short Question 2

In a situation of recession, what are the types of goods that will see their demand increase? Give examples.

Short Question 3

In which situation is a price ceiling binding?

Short Question 4 Describe at least two factors that affect the elasticity of demand.

Exercise 1

The demand and supply curves of cars are the following:

Qd = 160 - 8p Qs = - 20 + 2p

a. Calculatetheequilibriumpriceandquantityalgebraically.(10%)

b. Assumethatthepriceofgasolinegoesupovertime.Howwillthisaffectthemarketofcars?(explaininwords,noneedfor calculations) (10%)

Exercise 2

Using the midpoint method, calculate the price elasticity of demand between the following points. Is the demand elastic, inelastic or unit elastic?

Point A= (180 ; 9) Point B= (450 ; 5)

Formalities:

· Individual Assignment

· Student has 2 hours to complete the assessment.

· Submission file format: PDF