IAS 106

IAS 106 - Midterm 1 .Questions and Answers Intermediate Microeconomics: Midterm Exam I This exam is out of 100 points with 110 points possible. It is worth 15% of your overall grade in the class. Please show your work and box your answers. 1. (15pts) Market Demand and Elasticities: Consider the demand for an a Cadillac Escalade. Suppose that the demand is Qd = 500 - 3P + 3PKIA - 2PRW , where P is the price of an Escalade (in thousands of dollars), PKIA is the price of a Kia Sorrento (in ...

IAS 106 - Problem set #1 . Questions and Answers Solution for Problem Set #1 1. (18pts) Market Demand and Elasticities: Consider the demand for a Tesla Model S. Suppose that the demand for a Tesla Model S is Qd = 500,000 – 4P + 2PMaserati + 25,000Pgas, where P is the price of big SUVs (in thousands of dollars), PMaserati is the price of a Maserati Ghibli, and Pgas is the price for a gallon of gasoline. Assume that supply is given by Qs = -10,000 + 5P - 0.2PBattery. P is the price of ...