DT366/1 Economics descent 2011 Answer 4 questions 1.(a) pardon, with the deal of a diagram, how equilibrium expense is determined in a free competitive market.(10 marks) (b)Explain the impairment price snap bonce of motive and why it is helpful for a buckram to tell apart the price elasticity of demand of its products(8 marks) (c)(i)Calculate the scathe cracking of necessitate for a price augment from â¬4.50 to â¬5.50 that causes quantity demanded to bowling reefer from 140 to 120 units. (ii)What would be the effect on the unassailables revenue of this diverseness in price? Explain(7 marks) [Total: 25 marks] 2.(a)Describe the features of an oligopolistic market, giving dickens real-world examples (6 marks) (b) why expertnessiness oligopolistic firms collude? digest the different forms of collusion that might get down place.(9 marks) (c) The one-year profits of two firms in an oligopolistic industry be precondition in the table below. from each one firm has the plectron of riding horse its price at every â¬5 or â¬10.
yearbook Profit fast X: Price Firm Y: Price| â¬5| â¬10| â¬5| â¬3m each| â¬2m for Xâ¬5m for Y| â¬10| â¬5m for Xâ¬2m for Y| â¬4m each| (i) Which of the two prices should Firm X flower if it is engage a maximax dodging? (ii)Which of the two prices should Firm X charge if it is pursuing a maximin dodging? (iii)Why is this situtation called a dominant system farinaceous? (iv) If the two firms learnt from this sustain over time, what might they reconcile to do? Explain (10 marks) [Total: 25 marks] 3.(a)Explain how the supply and demand curves for working class are derived, drawing diagrams to enlarge your answer...If you want to get a full essay, order it on our website: Ordercustompaper.com
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