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    Group Assignment 3

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    Lê Minh Thư
    This document contains 3 economics examples with calculations: 1) A restaurant offering 2-for-1 meals. The elasticity of demand is calculated to be 2, indicating demand is elastic. 2) A college seeing a 10% increase in apartment prices from a 15% rise in student enrollment. The demand equation is derived. 3) Regulations reducing housing supply by 12% leads to a 3% price rise. Import restrictions cutting steel supply 24% causes a 6% price increase.

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    Group Assignment 3

    Uploaded by

    Lê Minh Thư
    60 views3 pages
    This document contains 3 economics examples with calculations: 1) A restaurant offering 2-for-1 meals. The elasticity of demand is calculated to be 2, indicating demand is elastic. 2) A college seeing a 10% increase in apartment prices from a 15% rise in student enrollment. The demand equation is derived. 3) Regulations reducing housing supply by 12% leads to a 3% price rise. Import restrictions cutting steel supply 24% causes a 6% price increase.

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    Group assignment 3

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    This document contains 3 economics examples with calculations: 1) A restaurant offering 2-for-1 meals. The elasticity of demand is calculated to be 2, indicating demand is elastic. 2) A college seeing a 10% increase in apartment prices from a 15% rise in student enrollment. The demand equation is derived. 3) Regulations reducing housing supply by 12% leads to a 3% price rise. Import restrictions cutting steel supply 24% causes a 6% price increase.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    60 views3 pages

    Group Assignment 3

    Uploaded by

    Lê Minh Thư
    This document contains 3 economics examples with calculations: 1) A restaurant offering 2-for-1 meals. The elasticity of demand is calculated to be 2, indicating demand is elastic. 2) A college seeing a 10% increase in apartment prices from a 15% rise in student enrollment. The demand equation is derived. 3) Regulations reducing housing supply by 12% leads to a 3% price rise. Import restrictions cutting steel supply 24% causes a 6% price increase.

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    Lê Minh Thư – Nhóm 3

    ASSIGNMENT TOPIC 3
    EX 1
    a, P1 =20$ P2=40$
    Q1=1 Q2=3

    % Q =(3-1)/1=2
    When the restaurant, introduced a voucher system giving patrons two meals for
    the price of one, the Binh’s dined out three times a month,so Binh must pay 40 $
    or 2 meals.

    % P =(40-20)/20=1
    So, elasticity of demand for this restaurant is E = % Q/% P=2
    b,
    When the promotional vouchers, the Binh’s monthly expenditure on meals at this
    restaurant increase. Although he ate three times a month, he pay two meals.
    The change is in total expenditure consistent with the value of demand you calculate.
    E >1 , P disincrease, TR increase
    EX 2
    2.1. College Enrollment and Apartment Prices
    a, $

    400 a

    Initial demand
    100 (10 apartments)
    The initial demand equation: P= a-b.Qd
    Since Ep= Q’p. (P/Q)
     Ep= (a-b.Qd)’. P/Q  Ep= -b.P/Q
     b= P/(Q.Ep)
     b= 400/(1000.1) = 0.4
    P= a-b.Qd 400= a-0.4x1000  a= 800
    The demand equation: P= 800 – 0.4.Qd

    b, Percentage change in equilibrium price=15%/(1+0,5)=10%

    ($) Initial new demand


    410 demand b supply
    400 a

    100 110 115 (10


    apartments)
    c, Percentage change in equilibrium price=15%/(1+0,5)=10%
    15% increase the demand for apartments will increase the equilibrium prices for
    apartments by 10%
    2.2 Regulations and Price of Housing
    Percentage change in equilibrium price =-(-12%)/(1+3)=3 %
    12% reduction in supply increases the equilibrium price by 3%
    New supply
    (1000 đôla)
    206 b initial supply
    200 a

    demand

    88 97 100
    2.3 Import Restrictions and the Price of Steel
    Percentage change in equilibrium price= -(-24%)/(2,3+0,1)=6%
    24 % reduction in supply of steel increases the equilibrium price by 6%

    New supply
    106 b initial supply
    100 a

    demand

    76 94 100

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