# Economic theory, option 1

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## Product description

Supply and demand for the commodity on the options described by the equations:
Table 3.1
Options The volume of demand
The volume of deals
№ 1100 - 11R 10 + 4P
You need:
a) build the supply and demand curves;
b) determine the equilibrium price and quantity of graphical and analytical method;
c) determine the maximum price at which can be purchased the first unit of the product;
d) to describe the implications of the government decision to fix prices for 1 unit. above the equilibrium (analytical and logical way);
d) show graphically that lose customers and manufacturers in establishing the state sales tax by one of the product at a rate of 2 den. units.

Based on the data tables of the calculated point and arc elasticity according to the selected option.
Table 3.2
Options The volume of demand,
Proposals pieces.
Price (P)
rub. Income
(I),
rub. Price Dru-Gogo goods, rubles.
Find
Number 1 = 100
= 120
= 20
= 18
Give a description of the goods, the elasticity that you specify (normal, worst; interchangeable, mutually supportive, essential goods, luxury goods).

Activity 3
The company operates in conditions of perfect competition. Based on the data in Table 3.3 of the total cost (TC), the volume of production per month (Q) and the price of the goods (P) to calculate the necessary indicators and draw conclusions.
Table 3.3.
Option 1
Q TC P
0 28
1 48 25.0
2 63
3 73
4 96
5128
You need:
a) calculate the constants (FC), variable (VC), marginal (MC), the average total (ATC), average variable (AVC) costs;
b) build on the same graph curves ATC, AVC, MC, MR, on the other-TC and TR, and to determine the optimal production capacity;
c) determine under which issue the company receives the highest aggregate income (loss).

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