SAPP Academy
8th Floor, Nam A Bank building, 54 Le Thanh Nghi, Hai Ba Trung district, Ha Noi Hotline: 0889 66 22 76 (HN)
2Ard Floor, Green Star Tower, No. 261 Pham Van Dong, Bac Tu Liem district, Hanoi 0889 66 22 67 (HCM)
1st Floor, No. 2A Luong Huu Khanh, District 1, Ho Chi Minh City Website: Sapp.edu.vn
ECONOMICS
MODULE 1: FIRMS AND MARKET STRUCTURES
I. SUMMARY
Part 1: Demand and supply analysis Part 2: Market structures
Unit 1: Elasticity of demand Unit 1: Distinguishing market structures
Unit 2: Substitution effect, income effect Unit 2: Market structures and profit maximization
Unit 3: Diminishing marginal returns Unit 3: Concentration measures
Unit 4: Breakeven point and shutdown
point, economies of scale
II. QUESTIONS
Part 1: Demand and supply analysis
Unit 1: Elasticity of demand
The following information relates to questions 3-5
The market demand function for four-year private universities is given by the equation:
Qdpr = 84 - 3.1Ppr + 0.8I + 0.9Ppu
Where Qdpr is the number of applicants to private universities per year in thousands, Ppr is the
average price of private universities (in thousands of USD), I is the household monthly income (in
thousands of USD), and Ppu is the average price of public (government-supported) universities (in
thousands of USD). Assume that Ppr is equal to 38, I is equal to 100, and Ppu is equal to 18.
1
, SAPP Academy
8th Floor, Nam A Bank building, 54 Le Thanh Nghi, Hai Ba Trung district, Ha Noi Hotline: 0889 66 22 76 (HN)
2Ard Floor, Green Star Tower, No. 261 Pham Van Dong, Bac Tu Liem district, Hanoi 0889 66 22 67 (HCM)
1st Floor, No. 2A Luong Huu Khanh, District 1, Ho Chi Minh City Website: Sapp.edu.vn
Question 3 (Curri 2023):
The price elasticity of demand for private universities is closest to:
A. -3.1
B. -1.9
C. 0.6
For Activity 2.1: Self-practice For Activity 2.2: Self-review
Note down short explanations Compare your choices with the final answer and correct (if needed).
for your answer choices. Note down your own key takeaways/lessons learned.
Please note down here
2
, SAPP Academy
8th Floor, Nam A Bank building, 54 Le Thanh Nghi, Hai Ba Trung district, Ha Noi Hotline: 0889 66 22 76 (HN)
2Ard Floor, Green Star Tower, No. 261 Pham Van Dong, Bac Tu Liem district, Hanoi 0889 66 22 67 (HCM)
1st Floor, No. 2A Luong Huu Khanh, District 1, Ho Chi Minh City Website: Sapp.edu.vn
Question 4 (Curri 2023):
The income elasticity of demand for private universities is closest to:
A. 0.5
B. 0.8
C. 1.3
For Activity 2.1: Self-practice For Activity 2.2: Self-review
Note down short explanations Compare your choices with the final answer and correct (if needed).
for your answer choices. Note down your own key takeaways/lessons learned.
Please note down here
Question 5 (Curri 2023):
The cross-price elasticity of demand for private universities with respect to the price of public
universities is closest to:
A. 0.3
B. 3.1
C. 3.9
For Activity 2.1: Self-practice For Activity 2.2: Self-review
Note down short explanations Compare your choices with the final answer and correct (if needed).
for your answer choices. Note down your own key takeaways/lessons learned.
Please note down here
3
8th Floor, Nam A Bank building, 54 Le Thanh Nghi, Hai Ba Trung district, Ha Noi Hotline: 0889 66 22 76 (HN)
2Ard Floor, Green Star Tower, No. 261 Pham Van Dong, Bac Tu Liem district, Hanoi 0889 66 22 67 (HCM)
1st Floor, No. 2A Luong Huu Khanh, District 1, Ho Chi Minh City Website: Sapp.edu.vn
ECONOMICS
MODULE 1: FIRMS AND MARKET STRUCTURES
I. SUMMARY
Part 1: Demand and supply analysis Part 2: Market structures
Unit 1: Elasticity of demand Unit 1: Distinguishing market structures
Unit 2: Substitution effect, income effect Unit 2: Market structures and profit maximization
Unit 3: Diminishing marginal returns Unit 3: Concentration measures
Unit 4: Breakeven point and shutdown
point, economies of scale
II. QUESTIONS
Part 1: Demand and supply analysis
Unit 1: Elasticity of demand
The following information relates to questions 3-5
The market demand function for four-year private universities is given by the equation:
Qdpr = 84 - 3.1Ppr + 0.8I + 0.9Ppu
Where Qdpr is the number of applicants to private universities per year in thousands, Ppr is the
average price of private universities (in thousands of USD), I is the household monthly income (in
thousands of USD), and Ppu is the average price of public (government-supported) universities (in
thousands of USD). Assume that Ppr is equal to 38, I is equal to 100, and Ppu is equal to 18.
1
, SAPP Academy
8th Floor, Nam A Bank building, 54 Le Thanh Nghi, Hai Ba Trung district, Ha Noi Hotline: 0889 66 22 76 (HN)
2Ard Floor, Green Star Tower, No. 261 Pham Van Dong, Bac Tu Liem district, Hanoi 0889 66 22 67 (HCM)
1st Floor, No. 2A Luong Huu Khanh, District 1, Ho Chi Minh City Website: Sapp.edu.vn
Question 3 (Curri 2023):
The price elasticity of demand for private universities is closest to:
A. -3.1
B. -1.9
C. 0.6
For Activity 2.1: Self-practice For Activity 2.2: Self-review
Note down short explanations Compare your choices with the final answer and correct (if needed).
for your answer choices. Note down your own key takeaways/lessons learned.
Please note down here
2
, SAPP Academy
8th Floor, Nam A Bank building, 54 Le Thanh Nghi, Hai Ba Trung district, Ha Noi Hotline: 0889 66 22 76 (HN)
2Ard Floor, Green Star Tower, No. 261 Pham Van Dong, Bac Tu Liem district, Hanoi 0889 66 22 67 (HCM)
1st Floor, No. 2A Luong Huu Khanh, District 1, Ho Chi Minh City Website: Sapp.edu.vn
Question 4 (Curri 2023):
The income elasticity of demand for private universities is closest to:
A. 0.5
B. 0.8
C. 1.3
For Activity 2.1: Self-practice For Activity 2.2: Self-review
Note down short explanations Compare your choices with the final answer and correct (if needed).
for your answer choices. Note down your own key takeaways/lessons learned.
Please note down here
Question 5 (Curri 2023):
The cross-price elasticity of demand for private universities with respect to the price of public
universities is closest to:
A. 0.3
B. 3.1
C. 3.9
For Activity 2.1: Self-practice For Activity 2.2: Self-review
Note down short explanations Compare your choices with the final answer and correct (if needed).
for your answer choices. Note down your own key takeaways/lessons learned.
Please note down here
3
