Microeconomics

Using the production possibilities model below , illustrate where for each maven concept is located on the graph and justify the hobby each economic conceptsluck addressincreasing costsunemploymentscarcityOpport building blocky costOpportunity cost is a measure of the esteem of m adepty foreg i in to achieve another effective , in the above diagram the opportunity cost at touch E that has 80 units health foreboding and 50 units of reproduction , to achieve 70 units of education accordingly the opportunity cost is 80-60 units of health cargonIncreasing costsAs we course up one unit for another there reaches a point where you have to give up more units to pay one unit , from point C to B is an example from point C to B we give up 20 units of health care to get only 10 units of educationUnemploymentPoint G shows a point where there are idle resources in the economy This point shows infra utilization of resources and therefore shows unemploymentScarcityPoint A shows scarcity of health care because we have speed of light units of health care and 0 units of education .

Point F shows scarcity of education because it shows the availability of 100 units of education and zero units of health careIllustrate and explain what exit chance to the equilibrium set and measuring rod of squawk if the following occurthe terms of cowardly decreases Because beef and chicken are substitutes , when the hurt of chicken decreases then people consider more chicken and the sum of money demanded of beef decreases , this shifts the demand curve dismantle ward manner of speaking the equilibrium price and demand to a lower take aim for beefmeat cutter wages decreasewhen the meat cutter wage decreases the cost of production for beef decreases shifting the supply curve down wards incomes decreaseWhen income decreases the demand by consumers will go down because their expendable income will be lower and therefore they will demand less beef , therefore the demand curve will shift down wards bringing the equilibrium price and quantity downwards import quotas on foreign beef are increasedWhen import quotas are increased then the supply of beef goes down and this will result into a shift in the supply curve upwards as follows the equilibrium price will now be higher Define price elasticity of demandPrice elasticity of demand is the responsiveness of demand to a change in priceExplain what an elasticity coefficient 1 impliesWhen the coefficient is greater than one then this means that if we increase the price by one unit then the quantity demanded will decrease by more than one unitWhat factor or factors might explain why this value is 1If the price elasticity of a exhaustively is greater than one then it is possible that the good has a close substitute and the good is produced in a dissolve marketExplain what an elasticity coefficient 1 impliesWhen the elasticity is less than one then a change in price by one unit will decrease the demand...If you want to get a full essay, order it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper