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For each of the following statements, draw a diagram that illustrates the likely effect on the market for Toyota cars. Indicate in each case the impact on equilibrium price and equilibrium quantity with full explanation.

a. A Mechanic Engineer warns that new Toyota cars overheats during long journeys. ( 2 marks)

b. The price of rubber which is used to produce tyres reduces. (2 marks)

c. A fall in the price of Nissan cars.(2 marks)

d. A rise in bus tariffs . (2 marks)

e. A successful advertising of Toyota cars.( 2 marks)

Explain how resources are allocated in a market system


Explain how resources are allocated in a market system


Explain the three possible profit maximizing positions of perfectly competitive firms in the short-run.


May i have a detailed explanation worth (15 marks)


1.1. Discuss the relationship between the three short-run total cost curves. Use a

diagram to motivate your answer


Explain how money stock and money velocity causes inflation. 


Suppose that the monetary base is $ 500 billion, the reserve deposit ratio is 0.1 and the currency-deposit ratio is 0.6. Calculate: i. Money Multiplier (2 Marks) ii. Money Supply 


Suppose that the monetary base is $ 500 billion, the reserve deposit ratio is 0.1 and the currency-deposit ratio is 0.6Calculate: i. Money Multiplier (2 Marks) ii. Money Supply


explain how money stock and money velocity causes inflation


suppose that the monetary base is 500 billion the reserve deposit ratio is 0.1 and the currency deposit ratio is 0.6 . find the money multiplier and money supply


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