6Solution:
In the short run when we keep only one input as variable and all other as fixed, we experience
that as keep on increasing variable input with fixed inputs, our return or marginal productivi
3- Think of three goods for which the demand is inelastic with respect to price. Do these
goods ever go on sale? Does understanding the relationship between elasticity and total
revenue help you under
2- A key skill in economics is the ability to use the theory of supply and demand to analyze
specific markets. In this weeks discussion, you get a chance to demonstrate your ability to
analyze the eff
4-Recently there has been discussion in the news about taxing junk food (soft drinks, for
example) in an effort to reduce the incidence of obesity in the U.S. Do you think the
demand for junk food is
5Solution:
Since it is known that free market are more efficient.
If we consider Q1 in the graph and if (Q1+1) quantity demanded then consumer will value less
the value of additional unit of consumpti
Is economics a science? Why, or why not? As part of your response and explanation,
include the definitions of science and economics as you understand them.
Solution:
Economics is more or less a social
ECF1100 Mid Semester test Practice questions 2016
1
Given the limited resources, the best choice in taking an action takes into account:
a
only benefits of making that choice.
b
the least possible cos
Principles of Microeconomics Notes
Tutor:
[email protected]
*Need to attend at least 8 tutorials to receive full attendance marks
Assessment 1 Tutorial
Attendance and
Participation
Assessment 2 We
ECF1100: MICROECONOMICS
Answers to tutorial 3
Chapter 4, Problem 2
The statement is false in general. As Figure 4.11 shows, the increase in demand for notebooks
results in an increased quantity suppli
8
To explain the observation that spending on restaurant meals declines more during economic
downturns than does spending on food to be eaten at home, economists look at the income elasticity
of deman
6
a
b
c
With a 4.3 per cent decline in quantity following a 20 per cent increase in price, the price
elasticity of demand is only 4.3 / 20 = 0.215, which is fairly inelastic.
With inelastic demand, th
7
Toms price elasticity of demand is zero, since he wants the same quantity regardless of the price.
Jerrys price elasticity of demand is one, since he spends the same amount on gas, no matter what th
9
a
b
c
With a price elasticity of demand of 0.4, reducing the quantity demanded of cigarettes by 20 per
cent requires a 50 per cent increase in price, since 20 / 50 = 0.4. With the price of a pack of
10 a The floods caused a decrease in market supply but this decrease was not uniform among growers.
Any vineyard owners who were not affected by the floods could produce the same output, and sell at
a
1
2
3
4
The price elasticity of demand measures in relative terms how much the quantity demanded responds
to a change in price. The income elasticity of demand measures in relative terms how much the
4
a
As Figure 5.2 shows, the hurricane in Colombia causes the supply of beans to contract (S 1 shifts
to S2) and the price of coffee beans rises.
Figure 5.2
b
Given coffee beans are an input into coff
1
a
b
c
d
2
a
b
3
a
b
Mystery novels have more elastic demand than required textbooks, because mystery novels have
close substitutes and are more of a luxury good, while required textbooks are more of
8
9
If there is a fixed quantity of the good, then the price elasticity of supply is zero. No matter how high
price rises, no more can ever be produced.
If a cyclone was to destroy half of Australias
5
a
b
If Emily always spends one-third of her income on clothing, then her income elasticity of demand
is 1, since maintaining her clothing expenditures as a constant fraction of her income means the
Topic 1: Markets and
Trade
Learning Objectives
Having a strong understanding of the concept of opportunity cost and how to apply it
Understand the basic sources of gains from trade including comparati
Topic 2: Perfectly
Competitive Market and
Government Policy
Learning Objectives
Understand the concepts of, and assumptions underpinning, individual and market demand and
supply curves
Understand how
Topic
3:
Markets,
Welfare
and
Policy
Under Perfect
Learning Objectives
Understand how to determine and interpret consumer surplus
Understand and critically analyse the dollar is a dollar assumption
Un
In Excel, click on Help. Type in data analysis toolpak and click the top option.
In the screen that opens click on
the outlined hyper-link
Click on Download on the bottom
of the webpage that opens up.
1
2
Interactive
Lecture Five
Please remember to bring Statistical Tables to this Lecture
ETF1100
Sampling and Sampling Distributions
Business
Statistics
LC Qn 1
3
4
Sources of Error in Sampling
Learni
1
2
Pre Class Video
Sampling Distribution
Please remember to bring Statistical Tables to this Lecture
ETF1100
Sampling Distributions
Business
Statistics
4
Sampling Distributions
In the workplace,
calc
1
ETF1100
Business
Statistics
2
Interactive
Lecture Six
INFERENCE I:
Please remember to bring Statistical Tables to this Lecture
Confidence Interval Estimation
Mean
Proportion
3
Confidence Intervals k
GST
Goods and Services Tax is applied to most sales of goods and provision
of services in Australia at a rate of 10%.
Exemptions: essential foods, interest, residential rent, water rates,
health serv
1
Pre Class Video
The Normal Distribution
Standardising
ETF1100
Business
Statistics
2
PROBABILITY II:
Please bring Statistical tables to Interactive Lectures
Probability Distribution Continuous
The N
1
Pre Class Video
Sampling and Sampling Error
2
Please remember to bring Statistical Tables to this Lecture
Sampling and Sampling Error
ETF1100
Business
Statistics
3
4
Introduction to Statistical Infe
1
Pre Class Video
Sampling and Sampling Error
ETF1100
Business
Statistics
2
Please remember to bring Statistical Tables to this Lecture
Sampling and Sampling Error
3
Introduction to Statistical Infere