User Account

All Pages

What is the percentage change in price

Assignment Help Macroeconomics
Reference no: EM131840848

Homework

1. Math Review

Let the horizontal axis be the X variable and the vertical axis be the Y variable. There are two points. At point A, X has a value of 2 and Y has a value of 2 and at point B, X has a value of 4 and Y has a value of 6.

Draw a straight line passing through both points.

a. Give the equation of that line.

b. Indicate the slope of the line and the X and Y intercepts of that straight line.

c. Now consider another straight line: Y = 7 - X. Draw this second line in your graph. (The same graph that has the first line.)

d. Solve algebraically for the intersection of these two lines and compare the result with the graph you drew in question (c).

2. Calculating percentage changes

a. In 2015, Smileytown consumed 12,000 gallons of mouthwash. In 2016, mouthwash consumption rose to 17,000 gallons. Calculate the percentage change in mouthwash consumption.

b. If the price of gasoline was $3.25 a gallon and it is now $3.75 a gallon, what is the percentage change in price?

c. At a recent company meeting, Ravi Batra, sales manager of Life's a Beach, a surfboard producer announced, "We have increased our sales by 13 percent in just 9 months." Suppose 9 months ago, its sales amounted to $245,000, what is the value of its sales today?

3. Production Possibility Frontier and Opportunity Cost

A factory of 500 workers produces footballs and basketballs. Each worker could produce either 20 footballs or 10 basketballs per day.

a. Draw the PPF for this factory's production per day and label it PPF1. In your graph, place the number footballs on the x-axis and the number of basketballs on the y-axis. (Hint: It is a straight line.)

b. Find the equation of the PPF.

c. Find the opportunity cost of 1 basketball.

d. Find the opportunity cost of 1 football.

e. Is there a relationship between the opportunity cost and the slope of the PPF? If yes, what is the relationship?

f. Describe the differences between a linear PPF and a PPF that is bowed-outwards from the origin using the concept of opportunity cost.

g. Suppose the workers invent a new method to produce footballs. With the implementation of the new method, each worker can produce 30 footballs per day instead of 20. Draw the PPF and label it PPF2. Find its equation. What does this example suggest about the relationship between the PPF and technological improvements?

4. Comparative Advantage

Suppose Linda and Jack are doing Biology and Economics homework. In one hour, Linda can solve 10 Biology questions and 0 Economics questions, or 20 Economics questions and 0 Biology questions, or any other linear combination lying on the line between those two points. In the same amount of time, Jack can solve 20 Biology questions and 0 Economics questions, or 30 Economics questions and 0 Biology questions, or any other linear combination lying on the line between those two points.

a. What is the opportunity cost of solving 1 Economics question for Linda? What is the opportunity cost of solving 1 Economics question for Jack?

b. What is the opportunity cost of solving 1 Biology question for Linda? What is the opportunity cost of solving 1 Biology question for Jack?

c. Who has the absolute advantage in doing Biology homework? Who has the absolute advantage in doing Economics homework?

d. Suppose that Jack and Linda work together. Who will specialize in solving Biology problems and who will specialize in solving Economics problems?

e. If they were to trade with each other, what is the price range (in terms of the number of solved Economics problems) acceptable to both Linda and Jack for a solved Biology question?

Verified Expert

The assignment is related to all numerical problems.The related economic concepts are percentage change, equation of PPF, opportunity cost and comparative advantage. All the numerical problems are shown with step by step calculations. Graphs are shown as per the requirement.

Reference no: EM131840848

Questions Cloud

What was the closing stock price for the last five days : What are some of the significant news items and press releases made by the company over the last year? What type of rating are analysts recommending?
How did you participate in marketing-related activities : How did you participate in marketing-related activities this past week as both a consumer and on the job?
How should advertisers reach early adopters with messages : How should advertisers reach early adopters with messages? Explain your rationale.
Express profound despair at meaninglessness of human life : Both Gilgamesh and the narrator of Ecclesiastes in the Hebrew Bible express profound despair at the meaninglessness of human life that ends inevitably in death.
What is the percentage change in price : Econ101 Homework. Calculating percentage changes- If the price of gasoline was $3.25 a gallon and it is now $3.75 a gallon, what is percentage change in price
Different tools to narrow down the specific market segments : Marketing professionals use many different tools to narrow down the specific market segments they plan to target for their products or companies.
What implications do they have for marketing planning : Consider Porter's value chain and the holistic marketing orientation model. What implications do they have for marketing planning?
Compare and contrast these two different ways of viewing : The traditional marketing 4 P's are product, price, promotion, and place. The new 4 P's described by Kotler and Keller include people, processes
Prepare a risk workshop agenda : Identify the required pre-workshop activities.Prepare a risk workshop agenda based on Figure B-8 .

Reviews

len1840848

1/31/2018 4:13:23 AM

Submit in Wed. class 31th and extra copy should be saved for any unexpected case of missing papers submitted. It is strongly recommended to be saved in typed version or pictures. Draw the PPF for this factory’s production per day and label it PPF1. In your graph, place the number footballs on the x-axis and the number of basketballs on the y-axis. (Hint: It is a straight line.

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd