Economics of Enterprise Answers

How to become a successful entrepreneur someday?

AS-shocks and AD-shocks played roles in producing the recession. What were their causes? What effect did each type of shock have on real GDP and unemployment? Why did they have these effects?

From 1993 to 2014, public expenditure as a proportion of GDP rose from 35% to around 42% in Japan, but fell from over 55% to below 50% in Italy.
Discuss possible reasons for an increase in the level of public expenditure as a proportion of GDP in an economy
Evaluate the likely economics effects of a reduction in the level of public expenditure as a proportion of GDP in Italy or another country of your choice.

TR=100q-2q²
TC=50+40q
Find both MC and MR
Determine the profit maximizing level ??

explain with the example of a diagram when tangency is only a necessary condition and when is it both a necessary and sufficient condition?

A manufacturer of detergent claims that the contents of boxes sold weigh on average at least 16 ounces. The distribution of weight is known to be normal, with a standard deviation of 0.4 ounce. A random sample of 16 boxes yielded a sample mean weight of 15.84 ounces calculate the P-value of the test

The probability that a rose bud blooms is p. In a random sample of 500 rose buds, 240 of them
bloomed.
With the data obtained in a random sample, a hypothesis test at the 1% level of significance is
carried out to determine whether p is different from 0.45.
a) State the null and alternative hypothesis [2]
b) Calculate the test Statistics [2]
c) What is the p-value of the test? [2]
d) Supporting your answer, state the conclusion of the test

Demand for Orange Juice is given as
Qd = 5000 – 2500 P + 1200 I + 650 E – 255 Ps
Suppose Income is I = Rs.500, Expectations E = 55, and Price of Ps = Rs 25.
a. Find the Demand Equation.
b. Using the demand function from part a.,
Calculate Elasticity of Demand for price range of Rs.125 and Rs.155.
c. What will be the ‘Price Elasticity of Demand’ at P = Rs.125?
d. Interpret the Elasticity of Demand calculated in (C) above.

Demand for Orange Juice is given as
Qd = 5000 – 2500 P + 1200 I + 650 E – 255 Ps
Suppose Income is I = Rs.500, Expectations E = 55, and Price of Ps = Rs 25.
a. Find the Demand Equation.
b. Using the demand function from part a.,
Calculate Elasticity of Demand for price range of Rs.125 and Rs.155.
c. What will be the ‘Price Elasticity of Demand’ at P = Rs.125?
d. Interpret the Elasticity of Demand calculated in (C) above.

The lockdown around the world has caused the rapid growth in the electronic market as people have shifted from conventional methods to the new methods for imparting knowledge and staying connected. If demand and supply function are given as:
Qd= 65 – 10P Qs= -35 + 15P
a. Find the equilibrium price and quantity and show it on labeled D/S diagram.
b. How do you interpret market equilibrium: (i) if P= Rs.6? (ii) if P=2?
c. Show on the Demand-Supply diagram in (a), the graphical interpretation of your answer of (b).