Solved Exercises in Microeconomics
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ScribdTranslationsSolved Exercises in Microeconomics
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ScribdTranslationsSOLVED EXERCISES OF MICROECONOMICS: SUPPLY, DEMAND AND
ELASTICITY
What is understood by market?
2. What are the assumptions of the perfect competition model?
3. How is equilibrium achieved in the perfect competition model?
4. What does the monopoly consist of?
5. The following are the supply and demand curves of the market for good A.
Explain what happens if:
a. A price lower than the equilibrium is given.
A price higher than the equilibrium price is given.
c. A technological improvement is introduced in the process of
production.
A sales tax is imposed.
Production costs increase.
f. People's preferences regarding the
Good A.
g. Increase consumer income.
6. The following are data regarding the demand for good X:
Price
A 25 0
B 20 20
C 15 40
D 10 60
E 5 80
F 0 100
a. Graph the demand curve.
b. What is known as elasticity?
c. What sign does the elasticity coefficient have?
d. Calculate the price elasticity at each point.
7. Cite and describe how the main determinants of demand affect a
good.
8. Suppose you work for a consulting firm and there is interest from
from a group of companies producing natural fruit juices. Based on
this information answers what happens with the quantity and equilibrium price in each
explain and graph one of the following items: (each item is independent of
the others).
a. Draw the typical supply and demand curves for good X. Indicate the
break-even point.
A tax is imposed that taxes the income of consumers.
c.Soft drink manufacturers lower their prices.
A agreement is established for a large amount of
fast food restaurants include fruit sodas in
the menu and promotions.
The sales tax is reduced from 13% to 10%.
A new technology is introduced to produce the soft drinks of
fruits.
The price of the main fruits used in production is increasing.
the soft drinks.
The Ministry of Health is conducting a campaign in favor of food.
natural.
For some reason, there is an excess supply.
The Government sets a maximum price for fruit drinks.
The price of fruit processing equipment increases.
9. If the price elasticity of demand is 2 and currently 100 units are being sold.
At the price of $20, how many units will be sold at the price of $21? Support your answer.
response with the respective calculations.
10. If the demand curve is given by the equation Qd = 500 - 10p and the curve of
The supply is given by Qs = 10p - 100.
a. Find the equilibrium quantity and price.
b. Build the graphs that show the equilibrium.
c. How does a 10% sales tax affect?
d. Show the effect of the tax graphically.
e. Determine the incidence of the tax, that is, how much of the tax
how much consumers pay and how much producers receive.
What factors influence the outcome of the previous item?
