# Study Session 4: Economics: Microeconomic and Macroeconomics

## Econ-Supply and Demand Analysis & Firm and Market Structures

This isn’t a very difficult section but does anyone find it as extremely tedious and painful to get through as I do?

## Price Indexes - required or not?

Hi, I am a little bit confused about unclear requirements on this exam.

According to Schweser: “The LOS does not require you to calculate these indexes. We show these examples to illustrate how substitution of goods by consumers can affect index values.”

CFA: Mock B PM 42 - calculate Paasche Index

## 9 Topics in 5 months with 1 Full Time Job and 1 Part Time job, is it possible?

Hello, I plan to study the following topics from December through April then review in May I have one full time job and one part time job.  Is it possible? Tips for the most efficient plan?

Economics

Quantitative Methods

FRA

Corporate Finance

Portfolio Management

Equity

Fixed Income

Derivatives

Alternative Investments

Ethics

## Economics

Can somebody please explain how is it derived?

Change in total revenue (ΔTR), the numerator of the ratio, can be written as (P)(ΔQ) + (Q)(ΔP).

## Qd @ perfectly elastic

What will happen to Qd of a perfectly eleatic good when price drops? Qd remain constant?!!

## Inferior & giffen

Can I say that the giffen good is a type inferior goods with the lowest prices/quality/level??

## Reading 15- Practice Question 19

Hi All,

Grateful if you could help on the below and advise why the question cannot be A or C?

Deep River Manufacturing is one of many companies in an industry that make a food product. Deep River units are identical up to the point they are labeled. Deep River produces its labeled brand, which sells for \$2.20 per unit, and “house brands” for seven different grocery chains which sell for \$2.00 per unit. Each grocery chain sells both the Deep River brand and its house brand. The best characterization of Deep River’s market is:

## Reading 15 - Firm and market structures - Practice Problem 5

Hi All,

I have the following question that I would like to understand :

The demand schedule in a perfectly competitive market is given by P = 93 – 1.5Q (for Q ≤ 62) and the long-run cost structure of each company is:
Total cost:     256 + 2Q + 4Q2
Average cost:     256/Q + 2 + 4Q
Marginal cost:     2 + 8Q

New companies will enter the market at any price greater than ? : 66

My questions are :

## Demand

The monthly demand curve for playing tennis at a particular club is given by the following equation: PTennis Match = 9 − 0.20 × QTennis Match. The club currently charges members \$4.00 to play a match but is considering adding a membership fee. If the club continues to charge the same per play charge, the most that it will be able to charge as a membership fee is closest to:

1. \$62.50.
2. \$162.50.
3. \$40.00.

Solution

A is correct. On rearrangement, the demand function is:

## AD / AS - Difference between Price Level, Output Price, and Input price?

Working through the Macroeconmics section and not entirely understanding this:

Looking at the Aggregate Supply Curve(s) - when they speak of Price Level, vs Input Price vs Output Price.

How can I think about each (how are they entirely different) from the AS point of view?

Price Level:

Input Price:

Output Price:

Been 20 years since I tackled macro, slowly coming back to me….. thank you.