1. Draw a graph and label each of the following elements. You should be sufficient to inform in words
each of the slides.
a. A instinctiveness to pay swerve
is the maximum tally a person would be unstrained to pay, sacrifice or exchange in order to pick up a good or to avoid something undesired, such as pollution.
b. A marginal greet curve
is the change in total cost that arises when the quantity produced changes by one unit. That is, it is the cost of producing one more unit of a good
c. A make curve
is the graph depicting the relationship between the terms of a certain commodity, and the amount of it that consumers are willing and suit able-bodied to purchase at that given expense.
d. A supply curve
represents the amount of some good that producers are willing and able to sell at various prices, assuming ceteris paribus, that is, assuming totally determinants of supply other than the price of the good in question, such as technology and the prices of factors of production, remain the same.
e. Producer surplus
is the amount that producers benefit by selling at a commercialize price mechanism that is higher than the least that they would be willing to sell for
f.
Consumer surplus
is the utility for consumers by being able to purchase a product for a price that is less(prenominal) than the price most that they would be willing to pay
2. Referring to the graph below, firmness of purpose the following questions
a. Why does the individual demand 1,000 units if the price is $20?
b. Why would a firm want to supply 2,000 units if the price were $5?
c. What is the residue price and quantity? Why is this an equilibrium? 2
d. In what sense is the equilibrium also efficient?
3. bowl over the graph below. You should be able to answer many questions about this graph.
a) What is the MNB of the very first unit consumed?
b) Identify the price that pack would be willing to pay for the three-hundredth unit.
c) Identify the MNB of the 300th unit...If you want to get a full essay, order it on our website: Orderessay
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