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7. Explain following concepts by using appropriate graphs.
1. Price elasticity of demand
2. Income elasticity of demand
3. Cross price elasticity of demand
4. Market equilibrium
5. Government interference in the market
A. The tomatoes that RADA has purchased will be distributed to outlets in other parishes. Could we assume that there is a national shortage of tomato? State your opinion on the
matter.
Quantity Supplied (000 lb.)
MARKET
SUPPLY
(000 lb.)
PRICE OF
TOMATO
$
MARKET
DEMAND
(000 lb.)
FARMER
Q
FARMER
R
FARMER
Y
30
500
50
25
25
40
400
100
60
40
50
300
130
100
70
60
200
185
125
90
70
100
220
180
100
Wind and solar energy are examples of
Assume that Austin Water purchases surface water from the Lower Colorado River Authority at a cost of $120,000 per month in the months of February through September. Instead of paying monthly, the utility makes a single payment of $880,000 at the end of the year (i.e., end of December) for the water it used. The delayed payment essentially represents a subsidy by the Authority to the water utility. At an interest rate of 3% per year compounded monthly, what is the amount of the subsidy?
grass cutter inc make a product used to trim lawns the firm has has fixed cost of 100000 per year management expect to sell 2000 units per year and that rate of output total variable cost will be an investment of 200000 if the price is set at 100 what is the target rate of return
Discuss whether or not a country will benefit by imposing trade protectionism
Suppose the rational and chic Judy, while strolling through Northpark Center, saw a beautiful pair of Christian Louboutin sequin-coated leather platform pumps which she purchased for price of $1795. We know with certainty that her reservation price for the pumps was _____ $1795.
Select one:
A.
less than or equal to
B.
equal to
C.
less than
D.
greater than
E.
greater than or equal to
Suppose a binding price ceiling is imposed on a market that was in equilibrium when the ceiling was imposed. Everything else held constant, the ceiling will _____ the quantity of the good demanded and _____ the quantity of the good supplied.
Select one:
A.
increase; decrease
B.
not change; not change
C.
decrease; decrease
D.
decrease; increase
E.
increase; increase
Suppose cheese and eggs are complements in consumption. An increase in the demand for cheese, everything else held constant, will cause the demand for eggs to _____ and the equilibrium price of eggs to _____.
Select one:
A.
increase; increase
B.
decrease; increase
C.
increase; decrease
D.
decrease; decrease
