Please help me solve questions 1-4
Group Members Names: Assignment #2 (5% of the grade) BECN150 Microeconomics; Summer 2022 Humber College Professor: Adela Nistor Handed: Wednesday, June 15, 2022 at 5:05pm Due date: Sunday, June19, 2022 by 7:00am 4 Problems; Total points: 27 Note: Work in groups of 3-5 students. The student group representative has to upload and submit (in Blackboard) one handout (word document .doc) per group with group answers and write names of all group members. The assignment should be submitted to the professor, typed, on the due date. For submissions, use the Assignment Drop Box. The assignment drop box is in the form of upload of document in the assignment page. Graphs, math formulas can be made by hand, then take a picture of it and insert it in the word document. Write legibly with font size at least 12. Do not email assignments. Late assignments or assignments provided in any other manner will not be accepted. Write the full names (first, last) of the group members on the assignment. Academic misconduct: Copying from the internet or other sources constitutes plagiarizing, and if caught, will receive a grade of zero for the assignment. Plagiarism is the act of submitting as your own, material which is in whole, or in substantial part, someone else's work. Students are expected to acknowledge the sources of ideas and expressions they use in essays, reports, assignments, etc. Failure to do so constitutes plagiarism and is punishable by academic penalty. For all the below questions, explain thoroughly and show your work. Exercise1 (10 points) Consider the country of Austria. In Austria, the supply of HB pencils is perfectly elastic, the demand for these HB pencils is unit elastic. In addition, with no tax on HB pencils, the price is $1 for one pencil, and 240 HB pencils a week are bought. Now, HB pencils are taxed at 20 percent. Discuss tax incidence, tax revenue, and the efficiency of this tax. Explain with words + computations + graph. Exercise2 (2 points) Recently, in the town GBH, the price of ABC granola bars fell from $2.85 to $1.62. As a result, the quantity demanded of XYG granola bars decreased from 125 to 98. Compute and interpret the correct elasticity. What does your answer tell you? Use and present answer with 4 decimals. Exercise 3 (5 points) Explain thoroughly what is the impact on the price elasticity of demand for the following scenarios: · Cleaning condos in the city of Toronto is very competitive. Therefore, a business is expected to lose half of its clients if it raises the price by 15% · Students taking an art course have no choice but to buy the book required by the professor · My cousin, Sam, has a habit to buy Tim Hortons’s coffee every week. The amount Sam spends on this coffee every week is exactly $16 · In Alberta, the fall frost destroyed many corn crops in a year. Therefore, corn prices that year doubled and the total sales of corn decreased by 18%. Exercise 4 (10 points) In order to produce a special mechanical device, the ABC firm can use three different technologies. Below are the TC (total cost) corresponding to each technology for the given output produced in a day. The ABC firm considers to adopt the proper technology to produce this special mechanical device. Find and draw the long run average total cost (ATC) curve. Why this long run ATC has the shape you found? Use and present answer with 2 decimals. What is the minimum efficient scale? Explain the reasons of the shape of ATC for each technology. Explain with words, computations + graph. 2 Output (Q) Technology1Technology2Technology3 1301521 2402529 3503937 4605650 5757568 69096106 7110119132 Total Cost (TC)