ECS2601 EXAM PACK Microeconomics II

ECS2601 EXAM PACK Microeconomics II Contents A Study Pack © 2014...................................................................................................................................................1 Study Unit 2: The basics of supply and demand ....................................................................................................3 May/June 2012 ....................................................................................................................................................3 November 2011........................................................................................................................................................5 Tutor’s brief notes......................................................................................................................................................7 Study Unit 3& 4: Consumer Behavior& Individual and Market Demand..............................................................9 MAY/JUNE 2012.......................................................................................................................................................9 NOVEMBER 2011 ....................................................................................................................................................16 More questions from tutor selection......................................................................................................................20 Tutor’s brief notes....................................................................................................................................................28 Study unit 6 & 7: Production & Cost of production.............................................................................................40 May 2012.................................................................................................................................................................40 November 2011......................................................................................................................................................44 Tutor’s brief notes....................................................................................................................................................48 More questions from tutor selection......................................................................................................................56 Study Unit 9-11..........................................................................................................................................................60 Tutor’s brief notes....................................................................................................................................................60 Study Unit 12: Oligopoly ..........................................................................................................................................69 More questions from tutor selection......................................................................................................................69 Tutor’s brief notes....................................................................................................................................................72 Study Unit 16: General equilibrium & Economic Efficiency ...............................................................................79 More questions from tutor selection......................................................................................................................79 Tutor’s brief notes....................................................................................................................................................83 SELECTED PAST EXAM PAPERS SUGGESTED SOLUTIONS ......................................................................................87 3 Study Unit 2: The basics of supply and demand May/June 2012 Answer points are (8 , 6) and ( 10 ,4) Starting at point (8,6) =1.33 Starting at point (10.4) The formula is not useful since it does not give unique solution. 4 Answer Arch Elasticity → = =1.8 Answer Equation of arch elasticity gives a unique solution 5 Option 5 is correct Option 1 is co