Another Chapter 2 Class Exercise (Economic Relations)

ECON 103

2/3/00

 

Class Discussion

  1. Demand equation vs. graph: Economists say P = f of Q, but graph P on vertical axis. What is wrong with this?
  2. If TC = $100,000 + 5Q + .0005Q2, what is total fixed cost (TFC)?
  3. If P = 60 - .005Q, what is the Y intercept? What is the X intercept? What is the slope?
  4. What is the supply curve?
  5. What is the difference between incremental and marginal analysis?
  6. Why do economists stress incremental analysis in decision making?
  7. Why are electronic spreadsheets growing rapidly growing in popularity as a way to express economic relationships?

 

Spreadsheet Exercise
  1. Save your file as YourlastnameCh2Ex2300.
  2. If you have any errors, such as those caused by trying to divide by zero, correct them. Note that you will lose one row on each end when you calculate MR1 & MR2.
  3. Use print preview on the worksheet & setup to add your file name as a header & your name as a footer.
  4. Use print preview & setup on the graph only to add your file name as a header & your name as a footer.
  5. If you have not already, narrow your columns & use alignment on your headings & your title to center across section, center vertically & wrap text. Note also that you can change the orientation of the text for headings. (Note that you can quickly get to format cells & alignment with a right mouse click.)
  6. If you have not already done so, label each axis & add a title to your graph. Note that you can edit a graph by selecting it & clicking on the graph icon.
  7. Add borders. I will show you how in class. (Use the right mouse click.)
  8. Format your number. Use currency, no places to the right of the decimal, and no symbol.
  9. Copy the number you need to do a graph showing both AR (demand) and MR curves to the second worksheet. Note that you will need to use paste special in order to do this.
  10. Copy the number you need to do a graph showing TC, MC & AC curves to the third worksheet. Again, you will need to use paste special in order to do this.
  11. Rename each worksheet; use a name that describes what each worksheet shows.