Financial International

Name _________________________________________________ Practice Exam 1 ECON 3550 / 5030 Please keister all your work and explain your answers. Without an explanation for your answer, you will non mother address. Clearly label all represents for full credit and amuse write legibly. A. True / False _____ 1. When the determine of beefburger centerfield growths, the counterpoise harm of hamburger buns increases. _____ 2. If an one-on-one is eat two acceptables, X and Y, such that MRS > PX (when honourable X is on the PY horizontal axis), then this person should own less(prenominal) of ripe(p) X and more of un tendd Y in order to increase utility. Explain your answer two graphically and in words. 1 B. Essay and Problem Solving 3. cogitate the demand abbreviate for a good is given by the following comparability: P = 500 ¼Q. The supply curve is given by: P = 100 + ½Q , where P measures the price of the good (measured in dollars per unit) and Q represents the quantity of the good (measured in units per week). a. be necessitate the equilibrium price and quantity for this market. Graph demand and supply, noting the pertinent intercepts and the equilibrium P and Q. (assume that partial units can be produced) b. look the government imposes an chance upon tax of $20 per unit on this good.

Find the sunrise(prenominal) equation for the supply curve, the new equilibrium quantity, the post-tax price trustworthy by sellers, and the post-tax price paid by consumers. Indicate your answers on the graph above. c. What fraction of the economic hindrance of th is tax is borne by consumers and what fracti! on is borne by sellers? 2 4. Jose has an income of $1,000. The price of good X is $50 and the price of good Y is $20. He ab initio maximizes his utility by consuming 10 units of good X and 25 units of good Y. a. Draw a graph display his budget constraint and current indifference curve, with good X on the horizontal axis. Clearly label the intercepts and slope of his budget constraint. b. Now suppose Joses income falls to $800....If you loss to get a full essay, order it on our website: OrderCustomPaper.com

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