Macroeconomics Answers

Consumer surplus indicates that... 

a) more will be demanded at lower prices than at a higher prices.

b) it is impossible to increase consumer well-being by changing the way in which income is spent.

c) consumers often get more value from a good than is represented by the price they pay for that good.

d) the allocation of resources is decided by the interaction of buyers and sellers. 

When the price of commodity B rises by 10%, the total revenue received by firms that sell commodity B rises by 5%. The demand for commodity B is therefore...

the fundamental problem in economics is

Income elasticity of demand is, “what extent quantity demanded changes as a result of change in :

Describe in full details how covid 19 has affected the exports business & shipping.

Describe in full details how COVID 19 has affected sales and revenue for business

Critically discuss the impact of land use regulations on the formalization and sustainability of small businesses

This question is based on the following table.

Price quantity demanded quantity supplied

R10 10 100

R8 20 80

R6 30 60

R4 40 40

R2 50 20

R0 60 0

If the price of this good is R2,00, there would be a _________ of _________ units.

•  A. surplus; 20
•  B. shortage; 50
•  C. surplus; 30
•  D. shortage; 30

Consider a three sector economy where: 

C = 20 + 0.80YD 

I = 50 

G = 20 

T = 10 

(a) Compute equilibrium level of income and show it in a diagram. 

(b) Compute consumption at equilibrium level of income. 

(c) Compute total leakages in an economy at equilibrium level of income.

Identify one product that is sold in grams,kilograms,millilitres,litres