GROUP PRESENTATION ON MICRO ECONOMICS

GROUP 1: ASSUMING YOU HAVE BEEN APPOINTED AS A GUEST LECTURER TO

THE ANNUAL CONFERENCE OF THE MEMBERS OF THE NIGERIAN ECONOMIC
SOCIETY (NES) TO DELIVER A PAPER TITLED "ECONOMICS AS A WAY OF LIFE".
YOU ARE REQUIRED TO EXPLAIN THE RELEVANCE OF ECONOMICS TO YOUR
CHOSEN CAREER.

GROUP 2:
ECONOMICS IS COMMON SENSE MADE DIFFICULT. JUSTIFY THIS ASSERTION
WITH COPIUS EXAMPLES.

GROUP 3:
EARLY CLASSICAL ECONOMISTS FOUND THE FOLLOWING "DIAMOND/WATER"
PARADOX PERPLEXING: "WHY IS WATER, WHICH IS SO USEFUL AND SO
NECESSARY, SO CHEAP, WHEN DIAMONDS, WHICH ARE SO RELATIVELY
UNNECESSARY, ARE SO EXPENSIVE?" IN MODERN ECONOMIC TERMS, EXPLAIN
THE WATER/DIAMOND PARADOX .

GROUP 4:
THE DEMAND FUNCTION FOR A PRODUCT IS GIVEN BY P = 200 – 4P AND SUPPLY
FUNCTION FOR THE SAME PRODUCT IS GIVEN BY P = 5P – 40

I. DETERMINE THE EQUILIBRIUM PRICE AND QUANTITY

II. FIND THE ELASTICITY OF DEMAND WHEN P = N 20
III. FIND THE ELASTICITY OF SUPPLY FUNCTION WHEN P = N 25

4.

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 Fruitopia is a hypothetical
economy that only produces two
goods: fruit and soft
drinks, as shown in the table
below.
Table 1 :Production Possibilities
for Fruitopia
Fruit (tonnes ) Soft Drinks (litres)
0 5000
1000 4750
2000 4500
3000 4000
4000 3500
5000 2500
6000 1500
7000 0

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a) From the data contained in
Table 1, plot the Production
Possibility Frontier (PPF) for
Fruitopia on Figure 1.
b) Calculate Fruitopia’s
opportunity cost of:
0 1000 2000 3000 4000 5000 6000 7000
8000 9000
0
1000
2000
3000
4000
5000
6000
Figure 1 Production Possibility
Frontier for
Fruitopi
GROUP 5:

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 ALL THINGS BEING EQUAL, WITH THE AID OF DIAGRAMS, EXPLAIN THE EFFECTS
OF CHANGES IN THE FOLLOWING MARKET EQUILIBRIUM ON PRICE AND
QUANTITY DEMANDED AND SUPPLIED OF A GIVEN COMMODITY X:
(I) INCREASE IN DEMAND, WITHOUT A CORRESPONDING INCREASE IN SUPPLY
OF COMM. X
(II) DECREASE IN DEMAND, WITH A CORRESPONDING INCREASE IN SUPPLY OF
COMM. X;
(III) INCREASE IN DEMAND, WITH A CORRESPONDING INCREASE IN SUPPLY OF
COMM. X;

(IV)INCREASE IN SUPPLY WITHOUT A CORRESPONDING INCREASE IN DEMAND

FOR COMM. X

GROUP 6:
Decide whether the following statements are TRUE, FALSE, OR NEUTRAL and explain the
underlined parts:
(I) THE MAJOR TYPES OF MARKET STRUCTURES ARE PERFECT
COMPETITION,MONOPOLY,MONOPOLISTIC COMPETITION, AND
OLIGOPOLY.
(II) THE FACTORS THAT INFLUENCE QUANTITY DEMANDED ARE NOT
DIFFERENT FROM THE FACTORS DETERMINING THE QUANTITY SUPPLIED
OF A PARTICULAR COMMODITY. EXPLAIN FIVE FACTORS EACH.

GROUP 7:
BASED ON YOUR UNDERSTANDING AND FURTHER RESEARCH, DO A REVIEW OF
THE NINE TOPICS COVERED IN THIS COURSE, HIGHLIGHTING THE MISSING
POINTS IN EACH OF THE TOPICS (INCLUDING YOUR SOURCES OF REFERENCE).
GROUP 8:
(A) THE SHORT-RUN COST FUNCTION OF A COMPANY IS GIVEN BY C = 190 + 53 Q,
WHERE C IS THE TOTAL COST AND Q IS THE QUANTITY OF OUTPUT.
(I) WHAT IS THE COMPANY’S FIXED COST?
(II) IF THE COMPANY PRODUCES 100 UNITS, WHAT IS THE AVERAGE VARIABLE
COST?

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(III) WHAT IS ITS MARGINAL COST?
(IV) WHAT IS ITS AVERAGE FIXED COST FUNCTION?

(B) WITH THE AID OF HYPOTHETICAL COST SCHEDULE, GRAPHICALLY ILLUSTRATE:

(I) TC (II) AC (III) MC

GROUP 9:
1. THE DEMAND FOR A PRODUCT IS GIVEN BY Q = 72 – 3P
I. DETERMINE THE REVENUE FUNCTION
II. WHAT IS REVENUE WHEN PRICE IS N2?
III. WHAT IS THE MR AND AT WHAT PRICE IS THE MR EQUAL TO ZERO?
IV. WHAT IS THE MR?

GROUP 10:

2. A FIRM HAS ANALYZED ITS OPERATION AND PRODUCTION AND COST

FUNCTION. THE REVENUE FUNCTION IS EXPRESSED AS: R= 400 - 4 Q2 (PER
THOUSAND NAIRA) AND COST (C) = Q2 + 10Q + 30 (PER THOUSAND NAIRA)
WHERE Q IS THE NUMBER OF UNITS PRODUCED AND SOLD IF THE FIRM
WISHES TO MAXIMISE PROFIT.
A. WHAT QUANTITY SHOULD BE SOLD AND AT WHAT PRICE?
B. WHAT WILL BE THE AMOUNT OF PRICE?
C. DETERMINE THE PROFIT

GROUP 11:
3. THE DEMAND FUNCTION FOR A PRODUCT IS GIVEN BY P=200 – 4P AND
SUPPLY FUNCTION FOR THE SAME PRODUCT IS GIVEN BY P = 5P – 40
IV. DETERMINE THE EQUILIBRIUM PRICE AND QUANTITY
V. FIND THE ELASTICITY OF DEMAND WHEN P = N20
VI. FIND THE ELASTICITY OF SUPPLY FUNCTION WHEN P = N 25

GROUP 12:

THE MC OF A TRADER HAS BEEN FIXED TO BE MC = 3 Q2+ 8Q + 400 DETERMINE

THE TOTAL VARIABLE COST OF PRODUCING 100 UNITS OF THE TRADE

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IF THE FIXED COST OF MANUFACTURING A PRODUCT IS N10, 000 AND THE MC AT
(X) OF AN OUTPUT IS N (60 + 2.5X), FIND THE FOLLOWING: TC AND AC.

GROUP 13:

THE DEMAND FUNCTION FOR A PRODUCT IS GIVEN BY P = 10 – 5Q WHILE THE

SUPPLY FUNCTION FOR THE SAME PRODUCT IS GIVEN BY P = 4Q – 8. THE TOTAL
COST FUNCTION FOR THE SAME PRODUCT IS TC = 210 – 81Q + 2 Q2. DETERMINE:

(I) THE EQUILIBRIUM QUANTITY

(II) THE BREAK EVEN POINT FOR THE PRODUCT. THE POINT OF MAXIMUM
PROFIT FOR THE PRODUCT AND THE MAXIMUM PROFITS MADE.
(III) THE NUMBER OF UNITS THAT WILL MAXIMIZE COST.
(IV) THE ELASTICITY OF DEMAND AND SUPPLY FOR THE PRODUCT AT
PRICES OF N 5 AND N 16 RESPECTIVELY. THE INTERPRETATION OF THE
RESULT OF (V) ABOVE.

GROUP 14:
GIVEN THAT A DISCRIMINATING MONOPOLIST FACES LINEAR DEMAND CURVE
WITH TWO DIFFERENT PRICE FUNCTIONS AS BELOW:
P1 = 160 – 10Q1
P2 = 360 - 40Q2
BUT THE COST FUNCTION REMAINS: C = 50 + 20 (Q1 + Q2)
REQUIRED:
CALCULATE THE VALUES OF PRICE AND QUANTITY SOLD BY THE MONOPOLIST
IN EACH MARKET AND THE PROFIT MADE BY THE MONOPOLY (I.E. THE VALUES
OF P1, P2, Q1& Q2 RESPECTIVELY).
GROUP 15:
THE TWO SCHOOLS OF UTILITY MEASUREMENT ARE: CARDINAL APPROACH AND
THE ORDINAL APPROACH. THE TWO APPROACHES MEASURE CONSUMER
EQUILIBRIUM DIFFERENTLY. DISCUSS THEIR DIFFERENCES.

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 GROUP 16:

A. THE TABLE BELOW IS A SCHEDULE THAT SHOWS THE RELATIONSHIP

BETWEEN THE VARIOUS QUANTITIES DEMANDED AND PRICE LEVEL OF A
COMMODITY. PLOT THE DEMAND SCHEDULE AND CALCULATE THE PRICE
ELASTICITY OF DEMAND BETWEEN: (I) A & B (II) B&C (III) C & D (IV) D & E
RESPECTIVELY:

POINT PRICE (N) QUANTITY

A 5 80
B 10 60
C 15 40
D 20 20
E 30 10

B. WRITE SHORT NOTES ON THE FOLLOWING:

(I) INDIFFERENCE CURVE
(II) (III) INCOME ELASTICITY OF DEMAND
(III) PRICE ELASTICITY OF DEMAND ( IV) BUDGET LINE

GROUP 17:
WITH THE AID OF GRAPHICAL ILLUSRATIONS, EXPLAIN THE DISTINGUISHING
FEATURES OF:
(I) PERFECT COMPETITION
(II) MONOPOLY

GROUP 18:

THE DEMAND FUNCTIONS FOR TWO COMMODITIES A AND B IN YABATECH FOOD

VILLAGE ARE GIVEN AS:

QA = 92 - 3PA - 2PB
QB = 40 - 20PA + 0.42Y

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 WHERE PA AND PB ARE PRICES OF COMMODITIES A AND B RESPECTIVELY,
AND Y IS CONSUMERS’ AVERAGE MONEY INCOME. GIVEN THAT PA = N3, PB =
N5 AND Y = N2000
i. COMP UTE AND INTERPRET THE PRICE ELASTICITY OF DEMAND FOR
COMMODITY A.
ii. WHAT IS THE INCOME ELASTICITY OF DEMAND OF COMMODITY B
AND INTERPRET?
iii. DETERMINE THE CROSS ELASTICITY OF DEMAND FOR COMMODITY.

iv. HIGHLIGHT FIVE FACTORS THAT INFLUENCES PRICE ELASTICITY OF

DEMAND

GROUP 19:
(A) WITH THE AID OF WELL- LABELLED, HYPOTHETICAL DEMAND AND SUPPLY
SCHEDULES, DRAW THEIR RESPECTIVE DEMAND AND SUPPLY CURVES, USING
APPROPRIATE SCALE OF MEASUREMENT

(B) WITH A SUPPLY FUNCTION GIVEN AS: S = 4P + 10, AND A DEMAND FUNCTION
GIVEN AS D = 100 + 0.25P. CALCULATE THE EQUILIBRIUM PRICE AND QUANTITY.

(C) ILLUSTRATE FIVE TYPES OF PRICE ELASTICITY OF DEMAND AND INTERPRET

THE RESULTS

GROUP 20:

A. GIVEN THE ABOVE SHORT-RUN COST SCHEDULE

QUANTITY TFC TVC
0 3000 0
100 3000 2000
200 3000 3000
300 3000 6000
400 3000 10,000
500 3000 15,000

CALCULATE: TOTAL COST (TC), AVERAGE FIXED COST (AFC), AVERAGE

VARIABLE COST (AVC), AVERAGE TOTAL COST (ATC) MARGINAL COST (MC)

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 B. DISCUSS FULLY FIVE MAIN TYPES OF INTERNAL ECONOMIES OF SCALE

GROUP 21:

(A) A TYPICAL DEMAND CURVE IS SIMILAR TO AN INDIFFERENCE CURVEAND AN

ISOQUANT.

(B) ALFRED MARSHAL SAID “ECONOMICSIS A SOCIAL SCIENCE THAT STUDIES

HUMAN BEHAVIOUR AS A RELATIONSHIP BETWEEN ENDS AND SCARCE MEANS,
WHICH HAVE ALTERNATIVE USES”
(C) GRAPHICALLY ILLUSTRATE CHANGE IN QUANTITY SUPPLIED IS NOT THE
SAME AS CHANGE IN SUPPLY

GROUP 22:

FIND THE EQUILIBRIUM PRICE AND QUANTITY FOR TWO COMPLEMENTARY

GOODS WHOSE DEMAND AND SUPPLY FUNCTIONS ARE:
QDX = 205 - 2.5PX - PY
QDY = 147.5 - 0.5PX - 1.5PY
QSX = - 30 + 1.5PX
QSY = - 60 + PY

GROUP 23:
Given, a hypothetical demand and supply schedule as below:

Price (N) Quantity Supplied (bags) Quantity Demanded (bags)

400 94 18
350 89 22
300 84 28
250 77 35
200 68 45
150 57 57
100 40 73
50 10 100

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 (i) Using an appropriate scale of your choice, draw the demand and supply curve,
establishing the equilibrium price and quantity
(ii) Explain 5 factors that influencing increase in the quantity supplied?
(iii) What is the magnitude of excess supply at price N400 and N50 respectively?
GROUP 24:
With the aid of illustrations, briefly explain the following concepts:
(i) Production possibility curve (PPC)
(ii) Marginal cost (MC)
(iii) Diminishing Marginal Utility (DMU)
(iv) Isoquant (Is)

GROUP 25:

Decide whether the following statements are TRUE, FALSE OR NEUTRAL and explain the
underlined parts:
A. Economics is a social science because it studies human behaviour as a relationship between
ends and scare means, which have alternative uses.
B. Production process does not involve conversion of factor inputs into outputs. Furthermore, it
is not subject to the law of diminishing returns and returns to scale.
Group 26:
21 (a) Given the demand curve of the monopolist as: P= 200-2q; Cost function of the
monopolist: C = 60+10q. Compute the maximum profit
21 (b). Given the price function of a monopoly is P =100-4q and its cost function as C= 50+20q.
Find:
i. The output that will give maximum profit
ii. The total revenue function and the total revenue
iii. The output that will minimize cost and the minimum cost if C = 60 – 20q + 4q1
Group 27:
27 (a) Based on the table below, Find A, B, C and D and show your workings

Qa Tux Mux Px MUX Qy TUY MUy PY MUy

PX PY
(Units) (Utils) (Utils) (N) Px (Units) (Utils) (Utils) (N) Py
1 120 120 20 6.0 1 80 80 12. 00 6.7

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 2 230 110 19 5:8 2 150 B 10.90 6.4
3 330 100 18 A 3 210 60 10.50 5:7
4 420 90 17 5.3 4 260 50 10.00 5.0
5 500 C 16 5.0 5 300 40 09.50 4.2
:
6 570 70 15 4.7 6 330 30 09.00 D

27b. Graphically explain the relationship between TU, AU and MU

27c. Given the demand for beef as Qb= 4850 – 5Pa + 1.5Pb+ 0.1Y with Y= 10,000, Pb= 200 and

Pa =100. Calculate: (a) Income elasticity of demand (b) Cross elasticity of pork with respect to
beef (c)Price elasticity of beef with respect to pork. Every answer must be interpreted.

GROUP 28
(a) With the aid of a diagram and formula, explain the following cost concepts:
(i) Total cost (ii) Marginal cost (iii) Average cost (iv) Variable cost (v) Fixed cost
(b) There had been arguments and counter-arguments as to a generally acceptable definition of
Economics. Present five definitions of Economics from the different renowned economists you
were taught.
(c) Every society of the world is faced with some basic economic problems. Highlight and
explain, with relevant references, how these economic problems are solved depending on the
type of economic system adopted

GROUP 29
29. Given the following demand and supply functions, calculate the equilibrium quantities and
prices:
Qdx = 41 – 1.5Px + 0.5Py
Qsx = - 2.5 + 7.5Px
Qdy = 46 + Px – 2Py
Qsy = - 3 + 16Py

GROUP 30
(a) A monopoly sell same product in two different markets at two different prices. The price
function of the two markets and the monopoly cost function are as stated below.

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Calculate the value of price and quantity sold in each of the market.
i.e (P1, P2, Q1 and Q2) and the profit made by the monopoly.
P1 = 80 - 5q1
P2= 180 - 20q22
C= 50+20 (q1+q2)
(b) Highlight five features common to imperfect market structures
GROUP 31
(a) With the aid of a diagram and formula, explain the following cost concept:
(i) Total cost
(ii) Marginal cost
(iii) Average cost
(iv)Variable cost
(v) Fixed cost
(b) Every society of the world is faced with some basic economic problems. Highlight and
explain, with relevant references, how these economic problems are solved depending on the
type of economic system adopted
GROUP 32:
Given the following demand function for a product:
Q = 50 – 20P + 0.4A + 0.05L
Where: Q = quantity demanded; P = price; A = Advertising expenses; I = Per capita income
Required: Assuming P = N100; A = N6, 000 and I = N10, 000
(i) Calculate the price elasticity of demand;
(ii) Find the income elasticity of demand;
(iii) What is the Total revenue function for the product

GROUP 33:
There are 5,000 identical individuals in the market for commodity Z each with a demand
function given as Qd = 12 – 2P and 500 identical producers of commodity Z each with a given
supply function of Qs = 20P.
(a) Find the market demand function and the market supply function for commodity Z
(b) Draw a market demand schedule and market supply schedule for commodity Z and from
there, find the equilibrium quantity (let price range from 1 to 5)

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 (c) Obtain the equilibrium price and equilibrium quantity mathematically

GROUP 34:
Given the case of price difference in two markets as below:
P1 = 2 – q1
P2 = 9 – 6q2
C = q1 + q2
Find the elasticity of demand for market A and market B
Recall that MR = (P1 + 1/ED)
Hint: ED = P/q (dq/dp)

Best Wishes
AYO ADEBANWA, Ph.D

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