Economic Elasticity Problem
1) What is the ownprice elasticity of demand for p = 100 – 5q, at q = 10; at q = 5; at q = 12?
2) What is the ownprice elasticity of demand for p = a – bq? (Show the elasticity as an expression depending on the value of q.)
3) Show the budget line for p1 = 5, p2 = 10, and m = 150 in a figure. (pi = price of good i; m = income).
4) For the numbers in 3), what can you say about the purchases of goods x1 and x2 if the bundles (x1, x2) available are ,
a) (16; 7)
b) (8: 8)
c) (10; 10)
d) (14; 9)
5) For the situation in 3), show graphically what if p1
a) increases to 8;
b) decreases to 4.
c) for the increase of p1 to p1 = 8, can the consumer still afford any of the consumption bundles in 4)?
6) For p1 = 5 and p2 = 10, what happens of income increase from m = 150 to m = 180? Show the change in a figure.

1.2BanerjeeChpt2.2CompetitiveBudgets.pdf

1.1BanerjeeChpt1IMarkets.pdf

1.3BanerjeeChpt2.3ChangesinPricesorIncome.pdf
Do you need a similar assignment written for you from scratch? We have qualified writers to help you.
You can rest assured of an A+ quality paper that is plagiarism free. Order now for a FREE first Assignment!
Use Discount Code "FREE" for a 100% Discount!
NB: We do not resell papers. Upon ordering, we write an original paper exclusively for you.