should be in simple language clear and word format any calculation should be illustrated.
Econ201 Assignment 1
Abdullah loves donuts. The table below reflects the value Abdullah places on each donut he eats: Value of first donut $0.60 Value of second donut $0.50 Value of third donut $0.40 Value of fourth donut $0.30 Value of fifth donut $0.20 Value of sixth donut $0.10
a. Use this information to construct Abdullah’s demand curve for donuts.
b. If the price of donuts is $0.20 how many donuts will Abdullah buy?
c. Show Abdullahs consumer surplus on your graph. How much consumer surplus would he has at a price of $0.20?
d. If the price of donuts rose to $0.40 how many donuts would he purchase now? What would happen to Abdullah’s consumer surplus? Show this change on your graph.
Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate.
Hours Needed to Make 1 Quantity Produced in 2400 Hours Car Airplane Cars Airplanes Japan 30 150 80 16 Korea 50 150 48 16
1- What is Japans opportunity cost of one car?
2- Suppose Korea decides to increase its production of cars by 18. What is the opportunity cost of this decision?
3- In what product Japan has an absolute advantage? and in what product Korea has an absolute advantage?