Can I please get some help with this assignment??

1. Suppose the price of good B is $8, and at that price 300 units of B are sold. The owner decreases the price to $7.50 and notices that 360 units of B are sold. a. In the space provided, and using the formula from my video, write (or type) the formula for price elasticity of demand for good B and calculate the price elasticity of demand (Ed). Round to the nearest 100th. For example, if your answer is 3.648, you would round to 3.65, that's the nearest 100th position, or if your answer is 0.567, you would round to 0.57. (4 pts) b. Is your calculated value "elastic, inelastic or unit elastic?" (1 point) ______________________ c. Give an example of a good or service this could be (paying attention to the price of good B so that your answer makes sense). (1 point) ___________________________ d. Using your calculated Ed value, if the price is increased by 25%, what will happen to quantity demanded? (2 pts) e. Should the government tax this item if its goal is to increase revenues? Why or why not? (2 pts) 2. Suppose average weekly income in Eminence, Missouri increases from $600 to $675. Statisticians notice that the quantity of good X purchased increases from 300 sold per week to 450 sold per week. a. Again, using the formula from my video, write the formula for the income elasticity of demand (EI) for good X and calculate the income elasticity of demand for good X. Round to the nearest 10th. For example, if your answer is 1.76, you would round to 1.8, or if your answer is 0.29, you would round to 0.3. (4 pts) b. What does your value tell you about good X? (2 pts) __________________________________ c. Give an original example of what good X could be. (2 pts) ______________________________

3. After you watch my video showing you how to do. this problem, answer a - d below based on the following table of marginal utility information given about Peggy who buys Shoes and Blouses weekly. The price of Shoes is $20, and the price of Blouses is $50. Peggy has $310 to spend. (You must use marginal utilityconsumer theoryto answer the questions below. No work, no points. Filling in the table = 2 points.)

Quantity MUS 1 240 2 200 3 160 4 80 5 40 6 20

Quantity MUB 1 800 2 700 3 600 4 500 5 400 6 200

a. Write the general equilibrium equation for the theory of consumer behavior for Peggy who buys shoes and blouses. (1 point) ________________________________________________ b. How many shoes should Peggy buy to maximize her utility_____, and how much does she spend on the shoes? ______ (1 point) c. How many blouses should Peggy buy to maximize her utility _____, and how much will she spend on the blouses? _____ (1 point) d. What is Peggy's total utility once she buys the shoes and blouses? _______ (1 point) Workspace 4. (6 pts) Utilize my sample problem(s) in the lecture notes to complete the following cost table and to calculate both the accounting and economic profit for the following business. Head-to-Toe, a doggy day-care, earns revenue of $180,000 a year. Kyra, the owner, asks you to determine whether she should stay in business given the following cost information: Cost: __________Kyra's forgone salary as a manager at another day-care = $42,000 __________Labor (day-care workers) = $55,000 __________$20,000 capital transferred from Kyra's home equity to the business __________Forgone interest of $2,000 on the $20,000 investment __________Doggie biscuits and food= $27,000

__________Fire insurance = $12,000 __________Entrepreneurial talent (normal profit) = $5,000 __________Cleaning supplies = $3,000 __________Advertising in the Yellow Pages as contracted = $2,000 1. First, for each blank above, fill-in if it's an "explicit" or "implicit" cost. Use abbreviations EX for explicit and IM for implicit to indicate your cost. 2. Then, for any explicit cost, state whether it's "fixed" or "variable." Use FC for fixed cost and VC for variable cost. 3. How much are her EX costs? __________ 4. How much are her IM costs? __________ 5. Calculate the accounting profit: ________________ 6. Calculate the economic profit: _________________ 7. Should Kyra stay in the doggy day-care business? Why? Why not? _____________________________________________________________________________ _____________________________________________________________________________