Consider the following graph:

a)  

Determine the value for the Marginal Rate

of Substitution (MRS) at the point where the individual’s utility is maximized.

b)  

Assume that the individual’s income is

equal to 400 euros/week, what is the price of one meter of housing per week?

c) If the price of housing obtained previously increases to 13 euros/m2 per week, and the individual's income increases to 520 euros/week, how should the feasible space of consumption change? (10 points)

Imagine Xiaomi company introduces a new gaming device to the market. they start selling their game console at $500/unit. After four months, if they have a high market growth rate they will change their price to $850/unit. what type of pricing strategy are they following?

A company designs and produces robots that can play with your pet dogs of small breeds such as Chihuahua and Yorkshire terriers . what type of customer segments of the market are they targeting?

There is news about the national widespread of the bird flu and there is possibility that the chicken and other poultry produce are infected. what happens to the supply and demand curves of the chicken and egg market? 

Company 'Z' has a total average cost of $21.5/unit of a good produced. they are considering a markup of 25% in their pricing decision. based on the criteria of cost plus pricing mark up how much is their selling price for each unit of the product?

A factory near a residential area is polluting the air of that region. what type of market failure is this causing?

Value proposition through designing products and services to meet specific needs of every single customer is known as:

which item is not one of the modules of the business model canvas?

Which of the following will affect the movement of the supply curve in the market for goods and services?

It is known that the demand for

clothing in the market where company 'XO' competes is given by the

following function: P = 100 - 2Qd, while the supply is given by Qs = 2P -

6S + 50. Where P represents the market

price of each garment, Qs is the amount offered and Qd the amount

demanded, both expressed in thousands of units, while S represents the

hourly wage worked in the textile sector.

Taking into account the previous information, answer the following question:

a) Determine the equilibrium price and quantity in the clothing market, if the hourly wage is equal to 5 euros. (15 points)

b) If the hourly wage goes down to 3 euros, determine the new equilibrium price and quantity. Compare both equilibria, before and after the change in hourly wage. Explain what happens to the demand and supply curve when wages decrease. (15 points)