代写 Econ 100 – Assignment

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  • 代写 Econ 100 – Assignment
    Econ 100 – Assignment 1            Winter 2017 
    TAnswer each of the following 
    questions.  You must provide justification to receive marks.  Students may collaborate in solving 
    the problems but must individually write up their answers. 
    Question 1. Consider a country with L = 100 units of labour per period to allocate between the 
    production of good 1 and good 2.  The amount of labour used in producing good 1 is L1, and the 
    amount used in producing good 2 is L2. The production relationships are represented by �1 = (�1)1/2 ��
    i)  Use the constraint on the use of labour and the production functions above to 
    derive the production possibilities function (relating feasible output levels of the two 
    goods). 
    ii)  Find the expression for the marginal rate of transformation in terms of the first 
    good. 
    iii)  Sketch the production possibilities frontier with the first good measured horizontally 
    and the second good measured vertically. 
    iv)  If the country always prefers to have equal amounts of the two goods in the largest 
    quantity possible, how much will it produce of the two goods? 
    v)  Suppose the country can trade its goods in an international market where the price 
    of the two goods are equal.  Show graphically that the highest level of consumption 
    with �1 = �2  will occur when ���(�1) = −�1 
    vi)  Find the production and consumption levels of the country under the assumptions in 
    v). 
    vii)  Illustrate the outcome of the country in your graph in iii) (or redraw the figure and 
    add the result). 
    Question 2. Suppose there are three households and 6 firms participating in a competitive 
    market for a commodity. 
    i)  If the household demand functions are 
    Find the market demand function q(p) by summing individual demands over relevant intervals 
    of prices. 
    ii)  Sketch the market demand curve representing the quantity demanded horizontally 
    and the price of the commodity vertically. 
    iii)  Suppose the 6 firms individually have the same supply function,  
    �1(�) = 
    Find the market supply function and add it to your sketch in ii). 
    iv)  Find the market equilibrium price and quantity using your graph in iii) to guide your 
    reasoning. 
    Question 3. Suppose the market demand for a commodity is given by 
    i)  At what point (q, p) on the demand curve is the price elasticity of demand 
    equal to one in absolute value? 
    ii)  Over what values of quantity demanded will a fall in the price lead to an 
    increase in the revenue generated in the market? 
    iii)  Suppose the market supply function is s(p) = p/2.  What are the equilibrium 
    price and quantity? 
    iv)  If the government adds a tax of $t/unit, what will the equilibrium quantity be 
    in terms of t? 
    v)  If tax revenue is t times quantity traded, use your result in iv) to find the best 
    choice of t for the government. 
    代写 Econ 100 – Assignment