ECO 1300 – Microeconomics Name ________________________________________ Fall 2022 – Prof. Maria NikoloudakisOPTIONAL ASSIGNMENT – Extra Credit Review Questions (Must show work for full...

Please solve the following 5 questions and show the solutions/work. If possible please type the answers onto the pdf which I sent. If not, yo can handwrite as well


ECO 1300 – Microeconomics Name ________________________________________ Fall 2022 – Prof. Maria Nikoloudakis OPTIONAL ASSIGNMENT – Extra Credit Review Questions (Must show work for full points) 1) (1 pt) Mark’s Baseballs produces baseballs. Mark’s Baseballs has total fixed costs of $500. Mark’s average variable cost is $20, and his average total cost is $25. How many baseballs is Mark currently producing? (Must show your work for full points) Answer: ___________________ 2) (1 pt) The quantity demanded of product A has increased by 12% in response to a 15% increase of price of product B. Calculate the cross-price elasticity of demand and tell whether the product pair is (a) apples and oranges, or (b) cars and gas. (Show your work!) 3) (2 pts) Explain what will happen to the equilibrium price and quantity of hybrid automobiles if there are technological advancements in the production of hybrid automobiles while at the same time consumer preference for hybrid automobiles increases. (include graph illustrations and words for full points) 4) (2 pts) At Luigi’s Pizzeria, the quantity of large pizza pies sold is 200 at the unit price of $15. Suppose the price elasticity of demand for pizzas by the initial value method is 1.5, and you would like to increase the quantity sold to 250. In order for this to happen, the new price must be ________________. (Must show you work!) 5) (4 pts) Let’s take a look at the elasticity of demand for student parking passes at Kingsborough. There is a reasonable public transportation system with buses coming to and leaving campus, but the majority of students drive to campus. A student parking permit costs $90. As the parking lots become increasingly congested, the college considers raising the price of the parking passes in hopes that it will encourage more students to carpool or take the bus. In 2021, the college sold 5,820 student parking passes. The college estimates the price elasticity of demand for student parking passes is .62 (Show your work for full points!!) a) If the college increases the price of parking permits from $90- to $98- for year 2022, how many fewer students will buy parking permits? Answer: ____________________ b) Calculate the difference in total revenue from the sale of student parking passes from 2021 to 2022. Be sure to include the amount and whether or not it is an increase or decrease in total revenue. Answer: __________________________________