ECON515 Spring 2023
Answer all questions. The FIVE questions are equally weighted. Show your work for full credits.
- -Foreachofthe
- ··following,statetheeffectonsupply:
- Achangeintechnologythatincreaseproduction costs
- A decreaseinthepriceofsemiconductors
- Adecreaseinthepriceofcomputers
- Anincreaseinthewagesofcomputerassembly workers
- Adecreaseinconsumerincomes
- Consider the demand for computers. In each of the following, state the effect on demand
- decrease in consumer income.
- An Increase in the price of computers
- Anincrease in the price of internet service providers
- A market demand and supply curves are given as:
Qd= 500-2P
Qs=-100+ 3p
- What is the equilibrium price.
- What is the equilibrium quantity.
- If the current price is $100, what is the quantity demanded and supplied?
- How much is the surplus or shortage?
- What is the difference between ARC elasticity and point elasticity?
- The demand curve is given by
Qd=500-2Px
- What is the total revenue function?
- What is the marginal revenue function?
- At what price is revenue maximized.
- What is the maximum revenue at the above price?
