Categories
Micro Economics

Study notes: week 5: elasticity

5.1 Learning Outcomes
1. Explain the concept of elasticity
2. Use formulas to compute the elasticity of demand and supply
3. Explain the differences between inelastic, elastic, and unitary elastic demand
4. Discuss factors that affect the price elasticity of demand
5. Use formulas to compute the income elasticity of demand and the cross-elasticity of demand
6. Identify the impact of an economic agent’s actions on the global economic environment
5.2 Action Required:
Reading
Read the following to prepare for this week:
Survey of Economics, Chapter 4: Elasticity: A Measure of Responsiveness
Study Notes: Week 5: Elasticity
http://www.economist.com/: This publication and website provide up-to-date economic news and analysis. As an Economist Student you are advised to keep reading this publication.
Watch Presentation for Chapter-4 from the link below and answer following questions.
https://lms.seu.edu.sa/bbcswebdav/pid-431481-dt-forum-rid-984508_1/xid-984508_1
Videos:
Watch the following Video and answer the question below.

5.3 Test your Knowledge (Question):
Q 1 Using concept of elasticity, explain with help of an example why a Bumper Crop is Bad News for Farmers?
5.4 Instructions
Answer the question in test your knowledge section.
• Post your answer in the discussion board using the discussion link below (Week5: Interactive learning Discussion)

Categories
Micro Economics

As an economist how you see this problem?

This assignment is an individualassignment.
❖ The Assignment must be submitted only in WORD format via the allocated folder.
❖ Assignments submitted through email will not be accepted.
❖ Students are advised to make their work clear and well presented. This also includes filling in your information on the cover page.
❖ Students must mention question numbers clearly in their answers.
❖ Late submitted assignments will NOT be entertained.
❖ Avoid plagiarism; the work should be in your own words; copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
❖ All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted. (Don’t change the cover page format.)
Assignment Questions:(Total Marks: 10)
Q1. In Riyadh City Road traffic congestion is increasing day by day. As an economist how you see this problem? Suggest and explain an economist’s solution to this problem. (3Marks)
Q2. What is opportunity cost? Draw a Production Possibility curve for a country producing two goods and show with help of an example, how principle of opportunity is applied in explaining the changes in production possibilities for the country. (3 marks)
Q3. What is market equilibrium? Take an example of pizza(assume its price and quantity demanded) and analyse graphically, what happens to the equilibrium price and quantity when, (a) there is increase in demand and (b) there is increase in supply. (4 Marks)

Categories
Micro Economics

Mankiw, n. gregory.

-Do not copy and paste (plagiarism).
-The solution must be unique and special to me only.
-There should be references, preferably scientific or academic articles.
Textbook & Learning Materials:
Mankiw, N. Gregory. Principles of Macroeconomics, 6th ed. Mason, OH: South-Western Cengage Learning, 2011. ISBN: 9780538453066 (hard copy); ISBN: 9781115468523 (eBook)
-The word count for the entire solution must be 1200 or more.
-There is in the other file the case of the study, please read it.
-Please include the required graphics in the solution.
thanks for your time

Categories
Micro Economics

As an economist student you are advised to keep reading this publication.

5.1 Learning Outcomes
1. Explain the concept of elasticity
2. Use formulas to compute the elasticity of demand and supply
3. Explain the differences between inelastic, elastic, and unitary elastic demand
4. Discuss factors that affect the price elasticity of demand
5. Use formulas to compute the income elasticity of demand and the cross-elasticity of demand
6. Identify the impact of an economic agent’s actions on the global economic environment
5.2 Action Required:
Reading
Read the following to prepare for this week:
Survey of Economics, Chapter 4: Elasticity: A Measure of Responsiveness
Study Notes: Week 5: Elasticity
http://www.economist.com/: This publication and website provide up-to-date economic news and analysis. As an Economist Student you are advised to keep reading this publication.
Watch Presentation for Chapter-4 from the link below and answer following questions.
https://lms.seu.edu.sa/bbcswebdav/pid-431481-dt-forum-rid-984508_1/xid-984508_1
Videos:
Watch the following Video and answer the question below.

5.3 Test your Knowledge (Question):
Q 1 Using concept of elasticity, explain with help of an example why a Bumper Crop is Bad News for Farmers?
5.4 Instructions
Answer the question in test your knowledge section.
Post your answer in the discussion board using the discussion link below (Week5: Interactive learning Discussion)

Categories
Micro Economics

-the solution must be unique and special to me only.

-Do not copy and paste (plagiarism).
-The solution must be unique and special to me only.
-There should be references, preferably scientific or academic articles.
-Operations Management in the Supply Chain: Decisions and Cases, 8th Edition (2021), ISBN 978-1-260-36810-9 by Roger G. Schroeder and Susan Meyer Goldstein
-The word count for the entire solution must be 1200 or more.
-There is in the other file the case of the study, please read it.
-Please include the required graphics in the solution.
thanks for your time

Categories
Micro Economics

Take an example of pizza(assume its price and quantity demanded) and analyse graphically, what happens to the equilibrium price and quantity when, (a) there is increase in demand and (b) there is increase in supply.

Instructions – PLEASE READ THEM CAREFULLY
❖ This assignment is an individualassignment.
❖ The Assignment must be submitted only in WORD format via the allocated folder.
❖ Assignments submitted through email will not be accepted.
❖ Students are advised to make their work clear and well presented. This also includes filling in your information on the cover page.
❖ Students must mention question numbers clearly in their answers.
❖ Late submitted assignments will NOT be entertained.
❖ Avoid plagiarism; the work should be in your own words; copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
❖ All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted. (Don’t change the cover page format.)
Assignment Questions:(Total Marks: 10)
Q1. In Riyadh City Road traffic congestion is increasing day by day. As an economist how you see this problem? Suggest and explain an economist’s solution to this problem. (3Marks)
Q2. What is opportunity cost? Draw a Production Possibility curve for a country producing two goods and show with help of an example, how principle of opportunity is applied in explaining the changes in production possibilities for the country. (3 marks)
Q3. What is market equilibrium? Take an example of pizza(assume its price and quantity demanded) and analyse graphically, what happens to the equilibrium price and quantity when, (a) there is increase in demand and (b) there is increase in supply. (4 Marks)

Categories
Micro Economics

2-you can find the instructions inside the document

My order:
1- No theft, no match please.
2-You can find the instructions inside the document
3- Please write a paper in the document
4- Write a report on whatever you use to research and what you write in a different document because we will discuss it separately in class
Write at least 5 references using the APA style.
NB:
Please use simple language
Put the in-text quote in each.
Additions within the document.

Categories
Micro Economics

3- please write a paper in the document

My order:
1- No theft, no match please.
2-You can find the instructions inside the document
3- Please write a paper in the document
4- Write a report on whatever you use to research and what you write in a different document because we will discuss it separately in class
Write at least 5 references using the APA style.
NB:
Please use simple language
Put the in-text quote in each.
Additions within the document.

Categories
Micro Economics

When they lower the price to $8, they now sell 1,920 dishes.

Question 1
Hank Schrader has his own geological business, They’re Minerals!, where he digs for precious rocks that
can be used for gifts. He is particularly interested in how elastic demand may be for his store’s products.
He learns that there are a few ways to label the demand.
a) Provide a brief description of elastic, inelastic, and unitary elastic demand. Also include how their
demand curves are shaped.
b) Provide two examples of goods or services (real or fictional) that you believe may fall into each
of these categories. Show your reasoning.
c) There are also two extreme cases of elasticity that were looked at in this chapter. Provide a brief
description of each, as well as, including how their demand curves are shaped.
d) Hank believes that his store’s products should be considered elastic goods, while his wife, Marie
argues that they are inelastic because “they are just rocks”. What determinants of demand
elasticity would you suggest Hank use in order to buttress his argument? Provide your reasoning.
Question 2
Walter White and Jesse Pinkman own and operate their own restaurant, Blue Sky. Suppose when they sell
their signature meal for $12, they sell 960 dishes. When they lower the price to $8, they now sell 1,920
dishes.
a. Calculate the price elasticity of demand using the midpoint method.
b. Is their good considered elastic, inelastic, or unit elastic? Provide your reasoning.
c. Based on the answer in (b), what should Walter and Jesse do in order to raise total revenue for
their restaurant and why?
Question 3
Gustavo Fring owns fast food restaurant, Los Pollos Hermanos, that competes against Walter and Jesse’s
restaurant. He wonders about the cross elasticity of demand for his restaurant’s food.
Suppose, on three different days, he takes different measures of cross elasticity of his signature meal
against his competitor’s, and he estimates three values: 4.5 on Monday, 0.8 on Tuesday, and -2.7 on
Wednesday.
a) What can he conclude about his product on each of these different days? Provide your reasoning.
Suppose that Fring is now interested in the income elasticity of demand for his products. Once again,
takes measures for three of his products. The restaurant’s chicken nuggets return an income elasticity of
-2.3, the chicken sandwich returns an income elasticity of 0.88, and the chicken salad returns an income
elasticity of 3.21.
b) What can he conclude about each of these menu items? Provide your reasoning.
c) What are the main similarities and differences between the price elasticity of demand, the cross
elasticity of demand, and the income elasticity of demand? Provide the full formula for each
using the variables and notation for each using the notation found in the lectures.
Question 4
All three businesses seen in the previous questions have to pay taxes but each of them is subjected to
different kinds of taxes.
Hank earned $137,821 in income last year, and had to pay $42,987 in taxes. Walt and Jesse earned
$278,123 in income last year, and had to pay $77,317 in taxes.
a) What kind of tax system are these businesses operating under? Provide your reasoning and
calculations.
In Gus’ case, he earned $782,481 in income last year and had to pay the government a fixed amount of
$225,000 in taxes.
b) What kind of tax system is his business operating under? Provide your reasoning and
calculations.
Question 5
Walt’s wife, Skyler, owns a car washing business, A1A Car Wash, and is provided with the details of her
business’ supply and demand curve in the graph below.

Categories
Micro Economics

Q3.

Q1. In Riyadh City Road traffic congestion is increasing day by day. As an economist how you see this problem? Suggest and explain an economist’s solution to this problem. (3 Marks)
Q2. What is opportunity cost? Draw a Production Possibility curve for a country producing two goods and show with help of an example, how principle of opportunity is applied in explaining the changes in production possibilities for the country. (3 marks)
Q3. What is market equilibrium? Take an example of pizza (assume its price and quantity demanded) and analyse graphically, what happens to the equilibrium price and quantity when, (a) there is increase in demand and (b) there is increase in supply. (4 Marks)