Supply and Demand and New Housing

Introduction to Microeconomics Fall 2012 Assignment 1 due on October 4 in adright (Total 80 points) Q1. (15 points) The behindcited consultation exhibitions evolution possibilities for two items—chairs and consultations. Combination| Chairs| Tables| A| 0| 6| B| 8| 5| C| 15| 4| D| 21| 3| E| 26| 2| F| 30| 1| G| 33| 0| (a) What is the occasion require of surrendering the primitive consultation? (33-30)/1=3 (b) What is the occasion require of surrendering the third consultation? (26-21)/1=5 (c) What is the occasion require of surrendering the sixth consultation? 8-0)/1=8 (d) Draw the evolution-possibilities flexion for chairs and consultations on a graph, placing consultations on the upright axis and chairs on the equal axis. (e) If the husbanding achieved greater teachableness in the evolution of consultations, how would the evolution –possibilities flexion veer? (f) If a further fruitful way of surrendering chairs were exposed, how would the flexion veer? (g) Suppose further economic media (labour, materials, and excellent) became helpful. How would the flexion veer? Q2. (15 points) The behindcited consultation describes the evolution possibilities of two cities. Red SweatersPer Worker per Hour| Bluish SweatersPer Worker per Hour| Montreal| 3| 3| Toronto| 2| 1| (a) Without occupation, what is the figure of bluish sweaters (in provisions of red sweaters) in Montreal? What is the figure in Toronto? (b) Which city has an independent service in the evolution of each colour of sweater? Which city has a relatively service in the evolution of each colour of sweater? (c) If the cities occupation delay each other, which colour of sweater conquer each ship-produce? (d) What is the dispose of figures at which occupation can happen? Q3. 10 points) Canada has a modified economic method, in which twain chafferplace and empire personate a role. For each of the behindcited office, elucidate why you purpose that it would be best dealt delay by the chaffer, or by empire renewal. (a) There are too divers restaurants in a town, and diverse are losing money. (b) The gap between the exalted-flavored and the bald is very distant, and the baldest citizens are weak to present equal the short necessities of history. (c) The capaciousst superchaffer association in the dominion is planning to buy the second-largest association, which would present it a near-monopoly in divers communities. d) A tend internal healthier eating has driven the figure of chicken up so sharply that divers consumers are chiding to the empire environing the acceptiond figures. (e) Diverse manufacturers are sharp requires by dumping squander into a topical capacious stream. Q4. (5 points) A customer is environing to buy 4 shirts at $20 each. When she finds that they accept right spent on sale for $15, she buys 5 shirts instead. Is her call-for for these shirts extensile or obstinate? Elucidate the argue for your apology. Q5. (10 points) From 1997 to 2001, the figure of coffee on globe chaffers prostrate from $1. 60 U. S per pulverize to $0. 6 U. S. per pulverize--- a decline of 65 percent. (a) What is the most argumentative exposition for such a decline in figure? (b) What elucidates the capacious greatness of the figure decline? (c) Draw a graph representing the factors in (a) and (b). Q6. (10 points) Assume the call-for list for ice-pith cones can be represented by the equation QD=160-3P, where QD is the amount call-fored and P is the figure. The contribute list can be represented by QS=140+7P, where QS is the amount gifted. (a) Calculate the findweight figure and amount in the chaffer for ice-pith cones. (b) The Canadian Association f Ice-Cream Eaters complains that the findweight figure conducive in separate (a) is too exalted, and their members cannot eat sufficient ice-pith cones at this figure. They lobby the empire to enjoin a figure ceiling on ice-pith cones of $1. What is the amount call-fored at this figure? The amount gifted? Is there a shortage or residue of ice pith? How big is it? What if a $2. 50 figure ceiling was enjoind instead? (c) Say instead that the Canadian Association of Ice-Cream Makers lobbies the empire, arguing that the findweight figure is too low for their members to find a suitable patronage. They deficiency a figure pavement of $3 per cone. What is the amount call-fored at this figure? The amount gifted? Is there a shortage or a residue of ice pith? What is it? What if a figure pavement of $1. 50 was enjoind instead? Q7. (15 points) One of the key figures Statistics Canada monitors is the figure of new housing. The statistics do not exhibition the express figure of housing in dollars, but rather an “index” of figures that is set at 100. 0 in 2007, delay the abjuration in each year behind 2007 exhibitioning how greatly figures accept acceptiond since 2007. To see how the figure of new housing has veerd balance the spent 5 years, investigate the Statistics Canada website at http://www. statcan. gc. ca/tables-tableaux/sum-som/l01/cst01/manuf12-eng. htm, and quest for New housing figure abjuration for Canada. Calculate the percentage acception in new housing figures each year balance the spent five years (2007-2011). What tend do you see in new housing figures for Canada (national mediocre flatten), and is there any magnanimous tend for the Metropolitan areas? What call-for cause or contribute cause factors effectiveness elucidate these?