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Economics Assignment Help Economics Homework Help
1/20/2015 Economicshelpdesk Mark Austin
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Some students are struggling with their Economics subject; some
even find the need to hire economics assignment help online.
There are actually lots of facets to Economics that can easily leave
a student bewildered while doing their assignments. Some are
usually strapped in time and juggling in between different
homework. At Economicshelpdesk we offer economics assignment
help to students struggling with their assignments.
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economics and Macro economics.
Economics assignment Sample Questions and Answers:
Question 1. Price of good X rises from $20 to $30 per unit. Consequently, its demand fails
by 20 units and becomes 100 units >Determine price elasticity of demand.
Solution. Given
P=$20 ∆Q = 20units
P1=$30 Q1 =100 units
∆P= $10 ∴ Q=120 units
∴ ep =ΔQ
ΔP .
P
Q =
20
10 .
20
120 =
1
3 = 0.33
Question 2. Calculate the elasticity of demand by total expenditure method.
(a)
Solution. It is a case of eD>1 or elastic demand. it is defined as a situation where with a
rise in price , total expenditure falls.
Price($) Total expenditure($)
5
6
40
30
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(b)
Solution. it is a case of eD = 1 because total expenditure remains unchanged with a
rise in prise.
(c)
Solution: it is a case of eD <1 or inelastic demand since total expenditure rises with a
rise in price.
Price($) Total outlay($)
5
6
40
40
Price($) Total expenditure($)
5
6
40
50
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Question 3. Originally, a product was selling for $10 and the quantity demanded was
1.000 units. The product price changes to $14 And as a result the quantity demanded
changes to 500 units. Calculate the price elasticity
Solution:
P = $10 Q=1,000 units
P1=$14 Q1= 500 units
eD= ΔQ
ΔP.
P
Q =
500
4 x
10
1000 =
5
4 = 1.25
Question 4. Which of the following commodities have inelastic demand? Salt, a
particular brand of Lipstic , medicine ,mobile phone and school uniform.
Solution: Salt, medicine, school uniform have inelastic demand as they do not have
many substitutes. On the other hand mobile phone and a particular brand of lipstic has
an elastic demand since they have many substitutes.
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Question 5. Let the demand function be: Q=10-2p. Find eD at a price of 5/2
Solution: Q=10-2p. Differentially Q with respect to P, we get ΔQ
ΔP = -2
Also when P=5/2 Q =10-2 5
2 = 5
∴ eD= ΔQ
ΔP .
P
Q = -2 x
5/2
5 = -2
5
2 x
1
5 = [-1] =1
Question 6. Let eD = -0.4 . By what percentage the quantity demanded goes down if
the price of the good increase by 4%?
Solution:
eD = %change in quantity demended
% change in price
|-04| = % change in quantity demanded
4
0.4 x 4 = 1.6
∴ % fall i aquantity demanded is 0.4 * 4 = 1.6%
