Question

求英语达人+经济学达人回答下面5个问题，可再追加悬赏100！

Question 1
Define consumer, or buyer, surplus. Use a supply and demand diagram to help explain the effect of a fall in the price
of an input on consumer surplus.

Question 2
When average household income is $10,000 per year, buyers demand 50,000 bicycles per year. A one percent
increase in average household income results in buyers demanding 49,500 bicycles per year. Calculate the income
elasticity of demand for bicycles. Be sure to write down the relevant formula and to interpret your result.

Question 3
An economist calculates the price elasticity of demand for petrol using data on quantity demanded collected a few
days following a change in price. She also calculates the price elasticity of demand using data collected three months
after the change in the price of petrol. Explain with the help of a diagram whether you expect the two elasticity
measures to be the same. If you do not, which will be larger and why?

Question 4
“If each seller of a particular good is a price taker in a competitive market the market demand curve for the good will be
perfectly elastic, or horizontal.”
True/False/Indeterminate. Explain your answer.
Question 5
The diagram below shows a firms’ short run production function. Explain, using the correct terminology, why the
production function has this shape. Draw a diagram showing the short run average variable cost (AVC) curve for this
firm.
Input
Output一个坐标+倒U型曲线
3楼不要复制别人答案，盗取别人的成果，而且那问题是我上一期提出的。没法画图的稍微用语言描述下即可。要求不高，基本达到就给分。

Answer 1

1.沉没成本 sunk cost
Cherie should not go to the cafeteria,for the money spent on permit can't be changed whatever she does, it is a sunk cost. What's more, if she chose to go to the cafeteria, she would spend more money. A rational decision is just ignoring the permit.

2.替代品 substitute
Apples are substitute for bananas. So when there's a fall in the price of apples,the demand of bananas will decrease, for people will consume apples instead of bananas.（Reflected in the diagram is the left-shift of Demand Curve）Yet the suppliers of bananas don't know the change (so Supply Curve remains). They will have to reduce price to attract consumers, yet still can't sell all bananas(in the diagram the new equilibrium is below the initial one，both price and quantity decrease)
大概需要画个图，就是D曲线左移，均衡点变低。不知道够不够详细

3.我也不知道中文怎么讲,exploited opportunities==就是没有改进的余地，达到帕萨特最优
In a market where price is below equilibrium, the sellers' reservation price is lower that of buyers. So he can increase his price equal to that of buyers and gains more profit. Then the market reaches equilibrium and no one can benefit without someone loses, or to say no mutually benefitical exchanges.

Answer 2

这些题必须画图在能解释出来.....说不明白呀~~

Answer 3

见曼困第3版