(20)1. a. List factors that can cause an increase in supply. b. How do increase in income affect demand?Draw a graph. (30) 2. a. When the price of coffee increases 5% , quantity demanded decreases 10% Calculate The pri elasticity of demand for coffee and describe as elastic/inelastic/unit. What happens to total revenue from coff sales? b. When the price of fresh fish increases 10% quantity demanded decreases 5% . Calculate T price elasticity of demand for fresh fish and describe as elastic/inelastic/unit. What happens to total rever from fresh fish? C. When the price of cheddar cheese increases 15% quantity demanded decreases 15% Calcul The price elasticity of demand for cheddar cheese and describe as elastic/inelastic/unit. What happens to t revenue from cheddar cheese? (30) 3. a. The Sweet Success Bakery sells 800 cakes at a price of 20 per cake. Its total economic costs producing 800 cakes are 4,800 Calculate The Sweet Success Bakery's economic profit. b. The Doğanlar A., a landscaping company, has total costs of 4 ,000 TL and total variable cost 1,000 TL. Calculate the Doğanlar's total fixed costs.

Question

(20)1. a. List factors that can cause an increase in supply. b. How do increase in income affect demand?Draw a graph. (30) 2. a. When the price of coffee increases 5% , quantity demanded decreases 10% Calculate The pri elasticity of demand for coffee and describe as elastic/inelastic/unit. What happens to total revenue from coff sales? b. When the price of fresh fish increases 10% quantity demanded decreases 5% . Calculate T price elasticity of demand for fresh fish and describe as elastic/inelastic/unit. What happens to total rever from fresh fish? C. When the price of cheddar cheese increases 15% quantity demanded decreases 15% Calcul The price elasticity of demand for cheddar cheese and describe as elastic/inelastic/unit. What happens to t revenue from cheddar cheese? (30) 3. a. The Sweet Success Bakery sells 800 cakes at a price of 20 per cake. Its total economic costs producing 800 cakes are 4,800 Calculate The Sweet Success Bakery's economic profit. b. The Doğanlar A., a landscaping company, has total costs of 4 ,000 TL and total variable cost 1,000 TL. Calculate the Doğanlar's total fixed costs.

Answer 1

1. a. Factors that can cause an increase in supply include:- Technological advancements- Decrease in production costs- Increase in the number of producers- Government policies favoring production- Availability of raw materialsb. An increase in income generally leads to an increase in demand. This is because consumers have more disposable income to spend on goods and services. In a graph, this would be represented by an upward shift in the demand curve.2. a. The price elasticity of demand for coffee is -2 (elastic). This means that for every 1% increase in price, the quantity demanded decreases by 2%. Since the demand is elastic, an increase in price will lead to a decrease in total revenue from coffee sales.b. The price elasticity of demand for fresh fish is -0.5 (inelastic). This means that for every 1% increase in price, the quantity demanded decreases by 0.5%. Since the demand is inelastic, an increase in price will lead to an increase in total revenue from fresh fish.c. The price elasticity of demand for cheddar cheese is -1 (unitary). This means that for every 1% increase in price, the quantity demanded decreases by 1%. Since the demand is unitary, a change in price will not affect total revenue from cheddar cheese.3. a. The Sweet Success Bakery's economic profit can be calculated as follows:Economic Profit = Total Revenue - Total Economic CostsTotal Revenue = Price per Cake * Number of Cakes SoldTotal Revenue =

16,000Economic Profit =

4,800 =

4,000 -

3,000

Soru

Çözüm

Cevap