# Econ101-project

• This assignment is an individual assignment.
• Due date for Assignment 1 is 28/02/2022
• The Assignment must be submitted only in WORD format via allocated folder.
• Assignments submitted through email will not be accepted.
• Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
• Students must mention question number clearly in their answer.
• Late submission will NOT be accepted.
• Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
• All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).

Submissions without this cover page will NOT be accepted.

Question-1

Bill can produce either tables or chairs. Bill can work up to 10 hours a day. His production possibilities are given in the table below: (3 Marks)

 Tables Chairs 0 200 50 180 60 160 70 140 80 120 90 0
• Explain production possibilities frontier (PPF) by putting tables on the Horizontal axis and chairs on the vertical axis. What is Bill’s opportunity cost of producing one additional table?
• Currently Bill is producing 70 tables and 140 chairs. Is this allocation of resources efficient? Why?
• Show this allocation on the graph and advise Bill how he can be more efficient.

Question-2

Explain by applying these concepts with examples.(2 Marks)

• Rational people respond to incentives
• Role of prices in allocating resources

Question-3

The table below shows the marginal benefit that Khaled earns from keeping his store open one more hour. Khaled has a marginal cost of \$40 per hour. Khaled stays open 20 hours. (3 Marks)

 Hours Marginal Benefit Per Hour 20 200 21 140 22 110 23 70 24 40 25 10 26 0
• Do you think Khaled’s decision to stay open 20 hours is optimal? Why?
• How many hours do you advise Khaled to stay open? Why?

Question-4

Suppose the market for Computer is given by the following equations for supply and demand:

(2 Marks)

Qd= 3300−2P
Qs= 500+8P

• Calculate the equilibrium price and quantity.
• Sketch the supply and demand curves on a graph indicating the equilibrium quantity and price.

Pages (275 words)
Standard price: \$0.00
Client Reviews
4.9
Sitejabber
4.6
Trustpilot
4.8
Our Guarantees
100% Confidentiality
Information about customers is confidential and never disclosed to third parties.
Original Writing
We complete all papers from scratch. You can get a plagiarism report.
Timely Delivery
No missed deadlines – 97% of assignments are completed in time.
Money Back