QNO- 8.

A) P=6250-0.25Q Q=2400-4P..A Q=500+bp..B For my understand 2400-4p =500bp Became QD=QS 29000=10P P=2900birr So q=2400-4p Q=2400-4x2900 Q=12,400 B) if p=1123birr =QD=2400-49(1123)=2400-19508 QD=19508 unit Then if P =1123birr QS ==5000+6(1123) QS==1738 unit

C) P=4214 QD==2400-4(4214) QD==2400-16856 QD==7144unit If P+4214 then QS=-5000+6(4214 QS=20284unit There for QS&QD which implies that there is the application of supply than demand & hence =QS QD=20284-7144 == 13140 UNIT

Q NO 11)
GIVEN =EMN =2 PN=5 birr PN2=10birr QM2 75 unit Required=Q1 ? EMN = QM= PN2=2 PN QM === (QM2-QM1) = 10=2 PN2-PN1 75

=== (75-QM1) -10= 2 10.5 75 === (75-QM1) 10 =2 5 15 === (75-QM1)10=2 15 == 750__10QM1= 30 == QM1= 72unit initial quantity

Q NO 23
Q MVA MVB MVA PB 8 15 21 26 30 33 35 36 11 21 30 38 45 51 66 70

1 2 3 4 5 6 7 8

16 32 42 52 60 66 70 72

11 21 30 38 45 51 66 70

MVA =MVB = 30 ( CASE 1) PA PB MVA =MVB = 21 ( CASE 2) PA PB = PAA+PBB = 12 This implies that is not affordable due to subject case 1 is affordable &to case 2 can be maximize the unit 2UNITS OF B & 3UNITE OF A

Q NO 24
GIVEN U=2Q-2Q2

A)

IF 2U=0==20-4Q=0 2G ==4Q=20 Q= 5UNITS it is maxim unit

B) IF M=10 ==PQ=M 4Q=10 Q= 2.5 UNIT QNO 25 GIVEN M=20BIRR PX1=2BIRR PX2=1birre A.V =4X1X2= Then MUX1= 2 (4X1.X2)= 4X2 2X2 MUX1 =PX1 MUX2 PX2 4X2=2 4X1 1 ==X2=2x1A PX1 X1+PX2 X2=M === 2X1+X2==20B THEN 2X1+2X1=20 == 4X1=20 X1=5UNIT Finally substitute X1=5 unit X2 =2x1=10 UNIT = 4X1X2= == U=4(5) (10) U =200

Q .NO 32
The price of X has both an income & substitute decrease effects . the consumer is envious QXA.on business line RS .

When the price of X for consumer increase by F1, F2 as the consumer move to B The substitute effect F1& F2 change the reaction price of X and Y but keeps real income constant . the income effect keeps relative price constante but increase purchase power X is a normal good because the income effect is positive

When X is an inferior good & when income effect is curve will be upward slope .the consumer is initially at point A less X because the income effect F2,F1 is less than the substitute effects of EF2 then decrease in the price of good leads to lower quantity of good demand

NAME TILAHUN MELESE ID NO 850/04

DEPARTMENT ACCOUNTING ASSIGMENT MICRO ECONOMICS I