Practice Assignment № 2

VARIANT № _____

TASK

1. Using your variant individual data present the graphs of demand and supply. Then you have to express these line’s equations (the linear functions of demand and supply). Find the equilibrium characteristics. Show and calculate buyer’s and seller’s benefits of exchange.

2. Plot a cobweb model under presented conditions if initial price equal P₀. For this purpose you should fill the gaps in the following schedule:

Make a conclusion about market equilibrium.

3. Using an individual value of specific tax/dotation you should define the new equilibrium characteristics, plot the graph of this market situation. Also you need to calculate consumer burden/ benefit, producer burden/benefit, society burden/benefits and Tax Revenue/ Dotation expenditures of the government. Depict these values on your graph.

So at the end of your work you’ll have three pictures with calculations and explanations.

Variant №1

Р₀ = 30

t = 15

Variant №2

Р₀ = 2,5

t = 0,5

Variant №3

Р₀ = 3,5

d = 1

Variant №4

Р₀ = 5

d = 2

Variant №5

Р₀ = 4

d = 1

Variant №6

Р₀ = 1,75

d = 1

Variant №7

Р₀ = 1

t = 1

Variant №8

Р₀ = 2,5

d = 0,5

Variant №9

Р₀ = 6

d = 2

Variant №10

Р₀ = 20

t = 4

Variant №11

Р₀ = 6

t = 4

Variant №12

Р₀ = 1,5

t = 1

Variant №13

Р₀ = 1

t = 1

Variant №14

Р₀ = 1,5

d = 0,5

Variant №15

Р₀ = 3

d = 2

Variant №16

Р₀ = 2

d = 2

Variant №17

Р₀ = 1

d = 2

Variant №18

Р₀ = 1,5

d = 0,5

Variant №19

Р₀ = 4

t = 2

Variant №20

Р₀ = 7

t = 1

Variant №21

Р₀ = 25

t = 10

Variant №22

Р₀ = 4,5

t = 1,5

Variant №23

Р₀ = 2,5

d = 2

Variant №24

Р₀ = 6

d = 3

Variant №25

Р₀ = 5

d = 2

Practice Assignment № 3

VARIANT № _____

TASK

1. Using your variant individual data from the schedule and the following demand function: Q_Da = 60 - 2P_a +4P_b +0,5I calculate price demand elasticity coefficient, income elasticity of demand and cross-elasticity coefficient. Make a conclusion on every case result. (NB! You should remember about ceteris paribus condition under every calculating: one factor influence can be determined just under all else equal).

2. The level of personal income (I_n0) in basic period is $1000. The number of consumers (N₀) is 1200 persons. Total demand for the good (Q_D0^total) is 24000 units. Using information about these values in current period (presented in the following schedule by variants) calculate income elasticity coefficient and make a conclusion about good’s characteristics. What changes in individuals’ quantity demanded you can expect if you know that the level of personal income will change by R%?

Practice Assignment № 4

VARIANT № _____

Main Requirement to the Design of the Assignment

The assignment should be fulfilled in a strict accordance with the list of the tasks. Every part of the assignment devoted to a certain task must start with the appropriate number (1.1, 1.2, 1.3 etc.) except parts 1.5, 1.7, 1.11, 1.13. All the figures have to be drawn on the basis of the real data, computed before with regard to scale. All the axis and curves should be named. It is allowed to use pencils of different colors to graph curves.

Initial Data

All the calculation has to be performed on the following data that are given:

– consumer’s utility function is the same for every variant ;

– prices of good and good ;

– consumer’s income ;

– changes in consumer’s income ;

– changes in price of good .

The values of these parameters you can find in the pool of data enclosed according to his or her number of variants.

List of the Tasks:

In the assignment a student should fulfill the following tasks:

1.1. Write down the equation of the budget line. Graph the budget line in the Figure 1.

1.2. Compute the consumer’s equilibrium bundle (optimal choice of the consumer of goods X and Y).

1.3. Draw the graph of consumer’s indifference curve, that goes through the equilibrium bundle on the Figure 1 and mark the consumer’s equilibrium point (E₁).

1.4. On the basis of the data of individual variants, write down the equation of budget line when consumer’s income has changed.

1.5. Draw the graph of new budget line in the Figure 1.

1.6. Find out new consumer’s equilibrium bundle and draw the new graph of consumer’s indifference curve in the same Figure. Mark consumer’s new equilibrium point (E₂).

1.7. On the results got in the 1.6 build up:

– Income-consumption curve (Figure 1);

– Engel curve for the goods X and Y (Figure 2).

1.8. Analyzing the form of Engel curve that was build up define the character of goods X and Y (normal, inferior).

1.9. Suppose the price of the good X changes, write down the new equation of budget line.

1.10. Make the copy of the Figure 1 with initial budget line, indifference curve and consumer’s equilibrium point (E₁) depicted. Note the new figure as Figure 3.

1.11. Draw the graph of new budget line after the price of X has changed in the Figure 3.

1.12. Find out new consumer’s equilibrium bundle and draw the new graph of consumer’s indifference curve. Mark consumer’s new equilibrium point (E₃).

1.13. On the results achieved in the 1.12 build up:

– Price-consumption curve (Figure 3);

− Consumer’s individual demand curve on good X (Figure 4).

Make a conclusion about relationship between X and Y goods.

INDIVIDUAL DATA

Date: 2015-12-11; view: 818