Embed Size (px)
Citation preview
Economics Homework Help Economics Assignment Help
Economicshelpdesk Mark Austin
Contact Us:
Web: http://economicshelpdesk.com/
Email: [email protected]
Twitter: https://twitter.com/econ_helpdesk Facebook: https://www.facebook.com/economicshelpdesk Tel: +44-793-744-3379
Copyright © 2012-2014 Economicshelpdesk.com, All rights reserved
Copyright © 2012-2014 Economicshelpdesk.com, All rights reserved
About Economics:
Some students are struggling with their Economics subject;
some even find the need to hire economics homework
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.
Why Choose Us?
Accuracy: We are a company employed with highly qualified Economics experts to ensure
fast and accurate homework solutions aimed at any difficult homework – both Micro
economics and Macro economics.
Economics assignment Sample Questions and Answers:
Question 1. Let slope of demand curve = - 0.5 Calculate eD when initial price is $ 20 per
unit and initial quantity is 50 units of the commodity.
Solution: Slope of demand curve = ΔQ
ΔP =-0.5
1
Slope =
ΔQ
ΔP = -
1
0.5
eD = ΔQ
ΔP .
P
Q = -
1
0.5 .
20
50 = |-0.5| = 0.8
Question 2. Explain the effect on expenditure if price of the good is released by 9% and eD
is - 0.7.
Solution: Since |eD| is 0.7 it is less than one. It is a case of inelastic demand showing
lesser percentage change in quantity demanded.
Since price of the good rises by 9% it means quantity demand falls by a lesser percentage
than 9%
Thus, total expenditure rises
Copyright © 2012-2014 Economicshelpdesk.com, All rights reserved
Question 3. Given two demand schedules, determine their elasticity of demand using the
total expenditure method.
P 5 4 3 2 1
QA
QB
200
200
210
260
230
370
255
600
300
1300
Solution:
Calculating total expenditure for good A and good B, we get:
Copyright © 2012-2014 Economicshelpdesk.com, All rights reserved
P QA Total expenditure
on A
QB 𝑻𝒐𝒕𝒂𝒍 𝑬𝒙𝒑𝒆𝒏𝒅𝒊𝒕𝒖𝒓𝒆
On B
5
4
3
2
1
200
210
230
255
300
1000
840
690
510
300
200
260
370
600
1300
1000
1040
1,110
1200
1300
Therefore, good A has inelastic demand (eD < 1) as expenditure fails with fall in price good
B has demand (eD > 1) as expenditure rises with fall in price.
Copyright © 2012-2014 Economicshelpdesk.com, All rights reserved
Question 4.
Let Qx =1200
PX
Prove that
(a) Total expenditure on good X remain unchanged as PX falls from $6 to Re . 1
(b) Derive value of eD along the demand curve.
Solution:
Points PX QX=𝟏𝟐𝟎𝟎
𝑷𝑿 Total Expenditure PX.QX
M
N
O
P
Q
R
6
5
4
3
2
1
200
240
300
400
600
1200
1200
1200
1200
1200
1200
1200
Thus, total Expenditure remain unchanged at $1200 when PX falls from $6 to Re 1.
(b)
QX = 1200
PX
Or Px. Qx=1200
