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Course: Calculus 1
I. Define supply function indicating whether it is INCREASING or DECREASING by means of a graph.
II. Define demand function indicating whether it is INCREASING or DECREASING by means of a graph.
III. Define total cost function (TC), total revenue (TR), utility (U), and what is relationship between these 3 functions.
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- What term describes the decrease in general satisfaction a person gets from consuming. each additional unit of a product? A) Consumer Surplus B) Marginal Utility C) Marginal Cost D) Diminishing ReturnsProblem #3 - Supply/Demand An potter sells handmade mugs on their website and has found that if the price for a mug is set at $22 they will sell 60 mugs and if they set the price at $35 they will only sell 21 mugs. You must show your work on all parts! a. Construct the monthly linear demand function. Use p for the price (dollars per mug) of the produce and q for the number of mug demanded. b. Find the equilibrium price if the monthly supply function is given by: q-0.003p² + 2p+10.5 Round to the nearest cent (i.e. $0.01). Include correct units. C. Report the monthly surplus or shortage when the price is $25. What is the corresponding revenue? Include correct units.The law of diminishing marginal utility states that.. price must be lowered to induce firms to supply more of a product. beyond some point, additional units of a product will yield less and less extra satisfaction to a consumer. it will take larger and larger amounts of resources beyond some point to produce successive units of a product. total utility is maximized when consumers obtain the same amount of utility per unit of each product consumed.
- It is known that the indifference curve is convex. What does this tell you about the relationship between the goods? 2. Using examples, does an increase in income affect a consumer’s budget line? Does it impact their total utility. 3.You are interested in starting a coffee shop at the University of the West Indies. Provide examples with explanations of explicit costs, implicit cost and sunk costs related to this business.Graphically illustrate how the demand curve for electric vehicles will be affected in each of these cases below.(a) A major climate change awareness campaign is instituted which teaches consumers about clean energy vehicles. (b) The price of gas-powered vehicles falls significantly, due to lower costs of production. (c) Gas prices experience a significant and long-standing increase.(d) The price of electric vehicles falls due to a fall in the cost of production.Homework (Ch 05) On the following graph, use the green point (triangle symbol) to plot the weekly total revenue when the market price is $50, $75, $100, $125, $150, $175, and $200 per scooter. TOTAL REVENUE (Dollars) 7830 7290 6750 8210 5670 5130 4590 4050 3510 2970 0 25 50 75 100 125 150 175 200 225 250 275 300 325 PRICE (Dollars per scooter) Total Revenue gage Learning According to the midpoint method, the price elasticity of demand between points A and B is approximately Suppose the price of scooters is currently $25 per scooter, shown as point B on the initial graph. Because the demand between points A and B is a $25-per-scooter increase in price will lead to in total revenue per week. In general, in order for a price increase to cause a decrease in total revenue, demand must be
- Calculate marginal utility and marginal utility per dollar for the data provided in the table below: (round to two decimal places) The Price of wine is 4 The Price of Cheese is 0.58 The Consumer's budget for wine and Cheese is 14.91 GLASSES (WINE) (WINE) WEDGES (CHEESE) TOTAL UTILITY OF WINE TOTAL UTILITY (WINE) MARGINAL UTILITY/dollar MARGINAL UTILITY OF CHEESE 1 60 15 Number Number 144 2 45 55 Number 199 56 Number Number 4 252 65 51 Number 5 303 73 The Quantity of Wine this consumer would buy to maximize utility is: Number The Quantity of Cheese this consumer would buy to maximize utility is: Number What is the consumer's Total Utility when optimized: Number 2 3 3 A 5 (CHEESE) MARGINAL UTILITY Number 11 Number 8 (CHEESE) MARGINAL UTILITY/dollar Number Number Number NumberIn the following scenarios, you will be given a product and an event. Determine what will happen to the demand for the product based on the event, what happens to the demand curve, and give the non-price determinant that caused it to occur. (chose from the 7 determinants listed in the notes). The first one is answered for you as an example. EXAMPLE/ Product - Hamburgers Event - The price of steak increases EXAMPLE ANSWER/ Demand increases - Curve shifts right - Price of substitutes Rock Salt - It snows 8 inches over nightIn the following scenarios, you will be given a product and an event. Determine what will happen to the demand for the product based on the event, what happens to the demand curve, and give the non-price determinant that caused it to occur. (chose from the 7 determinants listed in the notes). The first one is answered for you as an example. EXAMPLE/ Product - Hamburgers Event - The price of steak increases EXAMPLE ANSWER/ Demand increases - Curve shifts right - Price of substitutes Salt - The price of salt doubles. 2. Sunscreen - Summer approaches. 3. Big Macs - The population in the United States increases by 20%. 4. Rock Salt - It snows 8 inches over night
- Q1)The following total utility schedule of two goods A andB are given as follows. Price of good A is $5 and price of good B is $4 and budget is $30. Find the consumer equilibrium TUa TUb 1| 400 800 2 320 3 260 4 220 5 200 640 530 460 396 Q2) Briefly explain the following. a) Sunk cost. b) Avoidable cost. c) Marginal cost. Q3) Draw the diagrams of total cost curves and short run average cost curves Q4) The demand function is given as follows: Qd=250000 – 500P – 1.5M – 240PX P= 200 TL, M= 60000 TL, Px = 100 TL. a) Find Qd b) Find price elasticity of demand. Interpret your result c) Find income elasticity of demand. Interpret your result d) Find cross price elasticity. Interpret your resultLaw of equi marginal utility is an important law of cardinal utility analysis. Explain this law with the help of its assumptions. Also explain the mechanism that how the total utility will be maximum at a point when the marginal utilities of both the goods become equal. Furthermore, there is a relationship between total and marginal utilities where they both pass through different stages when the consumer continues his or her consumption regularly. Describe this case brieflyIt is the change in total utility resulting from the consumption of an additional unit of the commodity. In other words, It is the utility derived from each additional unit. Marginal Utility Total Utility Average Utility O Optimal Utility
