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    Microeconomics Numericals

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    hrshv941
    This document contains 10 numerical questions related to microeconomics concepts such as: 1) Calculating price elasticity of demand for a good based on consumer spending amounts at two different prices. 2) Determining the nature of the relationship between two goods based on their positive cross price elasticity value. 3) Calculating the marginal rate of substitution between two goods based on the maximum satisfaction bundle for a consumer. 4) Finding the utility maximizing bundle of two goods for a consumer given their utility function and budget constraint. 5) Determining the quantity of two goods a consumer should consume to maximize utility given their marginal utilities and budget. 6) Calculating output, profits,

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    Microeconomics Numericals

    Uploaded by

    hrshv941
    33 views2 pages
    This document contains 10 numerical questions related to microeconomics concepts such as: 1) Calculating price elasticity of demand for a good based on consumer spending amounts at two different prices. 2) Determining the nature of the relationship between two goods based on their positive cross price elasticity value. 3) Calculating the marginal rate of substitution between two goods based on the maximum satisfaction bundle for a consumer. 4) Finding the utility maximizing bundle of two goods for a consumer given their utility function and budget constraint. 5) Determining the quantity of two goods a consumer should consume to maximize utility given their marginal utilities and budget. 6) Calculating output, profits,

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    Microeconomics-Numericals (1)

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    This document contains 10 numerical questions related to microeconomics concepts such as: 1) Calculating price elasticity of demand for a good based on consumer spending amounts at two different prices. 2) Determining the nature of the relationship between two goods based on their positive cross price elasticity value. 3) Calculating the marginal rate of substitution between two goods based on the maximum satisfaction bundle for a consumer. 4) Finding the utility maximizing bundle of two goods for a consumer given their utility function and budget constraint. 5) Determining the quantity of two goods a consumer should consume to maximize utility given their marginal utilities and budget. 6) Calculating output, profits,

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    33 views2 pages

    Microeconomics Numericals

    Uploaded by

    hrshv941
    This document contains 10 numerical questions related to microeconomics concepts such as: 1) Calculating price elasticity of demand for a good based on consumer spending amounts at two different prices. 2) Determining the nature of the relationship between two goods based on their positive cross price elasticity value. 3) Calculating the marginal rate of substitution between two goods based on the maximum satisfaction bundle for a consumer. 4) Finding the utility maximizing bundle of two goods for a consumer given their utility function and budget constraint. 5) Determining the quantity of two goods a consumer should consume to maximize utility given their marginal utilities and budget. 6) Calculating output, profits,

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    Microeconomics( Numericals)

    1. Calculate the price elasticity of demand for commodity X ,if a consumer spends
    Rs.540 on X when the price of X is 10 and Rs.620 on X when the price increases to
    Rs.15.

    2. Comment on the nature of relationship between good x and good y, if the cross
    price elasticity between the two goods is + 4.5.

    3. What is the marginal rate of substitution of Y for X if a consumer gets maximum


    satisfaction when he buys 2 units of X and 3 units of Y, given that the price of X =
    Rs.5 and the price of Y is=Rs.10.

    4. A consumer’s tastes and preferences are captured by the following utility function:
    U=2X2 + 3Y2
    The consumer has Rs.280 to spend on X and Y and the price of X =Rs.4 and price of
    Y =Rs.2. Find the utility maximizing bundle of X and Y.

    5. A consumer spends his income of Rs 500 on two goods --x and y . Price of x=Rs.100
    and price of y =Rs.200. The marginal utilities derived from x and y are given below

    Qx MUx Qy MUy
    0 - 0 -
    1 150 1 200
    2 120 2 190
    3 100 3 180
    4 80 4 160
    5 50 5 120
    6 20 6 100

    How many units of x and y should this consumer consume?

    6. A perfectly competitive firm sells its output at a price of Rs. 60. The cost function
    of this firm is given below
    C= 100+6Q-12Q2+Q3
    a) How much output does this firm produce and how much profit does it make ?
    b) At what price does this firm break even?
    c) At what price does this firm shut down ?

    7. The demand and cost function for a monopolist are given below
    Demand function: Q= 100-0.2 P
    Cost function : C= 50+20Q+Q3
    Find the profit maximizing output and the profits made by this firm?

    8. A monopolist has a marginal cost of Rs.4 and the elasticity of demand is -2.What
    price is charged by this monopolist?

    9. A monopolist sells in two different market segments with demand

    P1 = 32-2Q1
    P2 = 22-Q2
    The total cost of the monopolist is
    C= 10Q+2Q+Q2 where Q=Q1 +Q2
    How much profits does this monopolist make?

    10. Calculate the ratio of prices charged by a discriminating monopolist in two markets
    A and B, having price elasticities of demand of -2.5 and -1.5 repectively?

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