👑Microeconomics and Consumer Behavior  Essays

Identify influences, other than price, on a customer’s choice of bank.

Identify reasons why rich households spend more than the average household.

Discuss whether or not a ban on cars in a city will benefit the city’s households and firms.

Explain what is meant by a normal good and comment on the link between total utility, marginal utility and a consumer’s demand curve for that good.

Discuss how a government’s policies toward income and wealth distribution can affect a consumer’s demand.

Explain how a firm maximises its profit in perfect competition.

Discuss whether profit maximisation is the best strategy in the long run for firms in different market structures.

Explain how economists use the concept of elasticity to distinguish between inferior goods and necessary goods when consumer incomes change.

Explain why indifference curves are usually drawn convex to the origin, are downward sloping and do not cross each other. [12]

Consider, for an inferior good, the relationship between indifference curves, budget lines, price changes and demand curves. [13]

Explain the significance of cross elasticity of demand values that are negative, positive and zero.

Swaziland is a small African country where six in ten people live in poverty and most firms are small and use little capital equipment. In October 2015 it opened a new airport. Some economists suggest that the building of the airport involved a high opportunity cost and caused a range of external costs. The building of the airport is part of the government’s plan to turn the country from a developing into a developed country

Discuss whether people would prefer to buy a product from a small firm or a large firm.