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Please answer each question.  Please type.

 

For questions 1-3 consider the demand for Fall Intro Microeconomics courses at UOP, found to be:

            P   =  10,000 – 100 Q

            where P is the price and Q is the number of students

 

1  What is the arc price elasticity of demand between a price of

            a  $9000 and $8000?

            b  $6000 and $4000?

            c  $2000 and $1000?

 

2  What happens to the elasticity as the price drops?

 

3  If UOP were a for-profit business, can you give the university any advice based on your answer to #1 & 2?

 

4,5,6 Answer questions 1-3 again for the following demand:

            P  =  100,000 / Q

 

7   Would you expect the following to have higher or lower elasticity than

     Fall Intro Microeconomics at UOP.  Explain your answers:

            a  all courses at UOP in Fall?

            b  all Intro Microeconomics courses in all terms at UOP?

            c  all Intro Microeconomics courses at all CA universities?

 

8   What do Total Production, Average Production and Marginal Production tell us?

     How are they related to each other?

 

9   What do Total variable Cost, Average Variable Cost and Marginal Variable Cost tell us?

     How are they related to each other?

 

10 How are Average Variable Cost and Marginal Variable Cost related to Average Production and Marginal Production, respectively?

 

11 What do Total Cost, Total Variable Cost, and Total Fixed Cost tell us?

    How are they related to each other?

 

 

 

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