Econ Written Report Essays

969 Words Oct 14th, 2015 4 Pages
Written Report
Student name: Ho Sze Wing
Student PolyU ID number: 14089919D
Programme enrolled: Introduction to Economics
Name of lecturer: Wai Kwong Mok
Name of tutor: Xibin Zhang
Tutorial group number: AF1605_20141_D
Tutorial day and time: Monday (17:30-18:20)
Number of words used in the report: 914

Question 2.2
Price
($ per ticket)
Supply
Demand
Quantity
36000
600
(500)
(500) E
34000

0

This diagram shows the relationship between the demand and the supply of three concerts held by a pop singer last year and this year. The supply is vertical and does not change in these two years as the amount of seats in the Hong Kong Coliseum is the same and fixed. Also, since the question mentioned there is only one fixed
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Combining these two case, the range of the equilibrium price for the singer’s concert is more than or equal to $500 and less than $600 ( $600>Pe ≧$500).
Question 4.1 Increasing the amount of products supply to the market, the firm has four options. Before stating which option(s) belongs to short run and which belongs to long run, the definition of short run and long run need to be talked about. Short run is a time frame in which there are fixed and variable inputs factors. In the short run, the labor is variable factor and capital, for example: the plant, is fixed factor as the firm can usually adjust the quantity of labor used, however, the quantity of capital cannot. Long run is a time frame in which there are variable inputs factors only. In the long run, even the plant can be changed. In option a, as the firm is going to hire more workers and employ more raw materials, the quantity of workers and raw material (labor) change. Since the question have not mentioned about the plant, there is no change in the quantity of plant is assumed. Thus, there are variable and fixed inputs factors in option a and option a belongs to short run. In option b, although the firm is going to build a second production line, the place used is inside the existing manufacturing plant. As a result, the area of the plant is still the same and the capital is a fixed inputs factor. Therefore, option b belongs to short

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