TUGAS KELOMPOK

1. A hypothetical demand schedule for comics books in a small town is provided

below:
a. Fill in the table and calculate the price elasticity of demand over each
price range. Be sure to use average prices and quantities when computing
the percentage changes.
Demand schedule for Comics books

Price ($)

Quantity
demanded

Total
expenditure

Percent
change in
price

Percent
change in
Quantity
demanded

Elasticity of
demand

11
1
9
3
7
5
5
7
3
9
1
11
b. Plot the demand curve and show the elasticities over the different ranges
of the curve.
c. Explain why demand is more elastic at the higher prices
2. For each of the following events, state the relevant elasticity concept. Then
compute the measure of elasticity, using average prices and quantities in
your calculation. In all cases, assume that these are ceteris paribus changes.
a. When the price of theater tickets is reduced from $14.00 to $11.00, tickets
sales increase from 1200 to 1350.
b. As average household income increases by 10 percent, annual sales of
Toyota Camrys increase from 560.000 to 670.000
c. After a major failure of Brazils coffe crop sent coffee prices up from $1,50
per pound to $2,50 per pound, sales of tea increased from 15.000 pounds
per month to 16.000 pounds per month.
d. An increase in the world demand for pulp (used in producing newsprint)
increases the price by 14 percent. Annual production increases from 8
million tons to 11 million tons.
3. The following table shows the demand schedule for denim jeans
Price $ (per unit)
A
B
C
D
E
F
G
H

30
35
40
45
50
55
60
65

Quantity demanded
(per year)
400000
380000
350000
320000
300000
260000
230000
190000

Total expenditure

a. Compute total expenditure for each row in the table

b. Plot the demand curve and the total expenditure
c. Compute the price elasticities of demand between points A and B, B and
C, C and D, and so on
d. Over what range of prices is the demand for denim jeans elastic? Explain
e. Over what range of prices is the demand for denim jeans inelastic?
Explain
4. Letting p be the price of the product, suppose the demand and supply
functions for some product are given by the following:
QD= 100 3p
QS = 10 + 2p
a. Plot both the demand curve and the supply curve
b. What is the condition for equilibrium in this market?
c. By imposing the condition for equilibrium, solve for the equilibrium price
d. Substitute the equilibrium price into either the demand or supply function
to solve for the equilibrium quantity. Check to make sure you get the same
answer whether you use demand function or the supply function
e. Now suppose there is an increase in demand so that the new demand
function is given by the following: Q D = 180 3p. Compute the new
equilibrium price and quantity. Is your result consistent with the law of
demand?
f. Now suppose that, with the new demand curve in place, there is an
increase in supply so that the new supply function is given by the
following: QS = 90 + 2p. Compute the new equilibrium price and quantity.
Is your result consistent with the law of supply?
5. Suppose that the market for frozen orange juice is in equilibrium at a price of
$1.00 per can and a quantity of 4200 cans per month. Now suppose that at a
price of $ 1.50 per can, quantity demanded falls to 3000 cans per month and
quantity supplied increases to 4500 cans per month.
a. Draw the appropriate diagram for this market
b. Calculate the price elasticity of demand for frozen orange juice between
the price of $1.00 and $1.50. Is the demand elastic or inelastic? Explain
c. Calculate the price elasticity of supply for frozen orange juice between the
price of $1.00 and $1.50. Is the supply elastic or inelastic? Explain
d. Explain in general what factors would affect the elasticity of demand for
frozen orange juice.
e. Explain in general what factors would affect the elasticity of supply for
frozen orange juice.
6. Diketahui fungsi permintaan dan penawaran dalam sebuah pasar air minum
sebagai berikut:
Demand:
p = 320 20 QD
Supply:
p = 96 + 8 QS
Dimana satuan kuantitas (Q) adalah jutaan botol dan harga (p) adalah harga
per botol (dalam Rupiah).
a. Gambarkan kurva permintaan dan penawaran.
b. Hitung harga dan kuantitas keseimbangan.

c. Misalkan pemerintah menetapkan pajak sebesar Rp. 56 per botol.

Tunjukkan bagaimana pengaruh penetapan pajak ini terhadap
keseimbangan pasar. Apa harga konsumen yang baru dan apa harga
produsen yang baru?
d. Hitung total penerimaan dari penetapan pajak air minum tersebut. Berapa
bagian dari pajak tersebut yang dibayar oleh konsumen, dan berapa yang
dibayar oleh produsen. (Petunjuk: jika harga yang dibayar konsumen tidak
berubah dari harga keseimbangan sebelumnya, maka konsumen tidak
menanggung beban pajak).
7. Consider the world market for wheat. Suppose there is a major failure in
Russias wheat crop due to a severe drought. Explain the likely effect on the
equilibrium price n quantity in the world wheat market. Also explain why US
wheat farmers benefit from Russias drought. The following diagrams provide
a starting point for your analysis.
Price

Quantity of wheat
(millions of tons)
United States

Quantity of wheat
(millions of tons)
World