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The demand curve for eba at mama abuja shows an inverse relationship between price and quantity demanded in 2020 but in 2021 the demand for eba at mama abuja shows a positive relationship between price and quantity demanded. Kindly explain the factors responsible for this change
Given a macaroni economic model:
C=200+2/3yd
G=500
I=300
X=100
M=20+1/10y
T=15+1/20y
Required: determine equilibrium income, consumption exp, total tax, the multiplier
Given a macaroni economic model:
C=200+2/3yd
G=500
I=300
X=100
M=20+1/10y
T=15+1/20y
Required: determine equilibrium income, consumption exp, total tax, the multiplier
4) What minimum order value (MOV) should we set for the restaurants to be breakeven if our order commission is 25%, minimum delivery fee (paid by eaters) is 1.5 EUR and courier earnings (paid by Bolt) are 3.5 EUR?
Q: A consumer's utility function is given by the expression: U = (0.6X0.5+ 0.4Y0.5)2.
- Determine the marginal utility functions for each commodity. Does marginal utility decrease when consumption increases?
- Assuming that the price of good X is Rs 15 and the price of Y is Rs 6, write the equation of the budget line and plot it when income is Rs 450. What is its slope? What does it indicate?
- Calculate the marginal rate of substitution of Y for X and interpret its economic meaning. Write the equation showing the consumer's equilibrium condition.
- Obtain the equilibrium values of X and Y.
- Find the expressions for change in MUx due to an increase in Y and change in MUy due to an increase in X.
1. In the year 2010, the government decided to construct a thermal plant in a small town. Discuss its impact on equilibrium wage in the small town in the short and long-term. (5 Marks)
2. Kwabena earns $15 per hour for up to 40 hours of work each week. He is paid $30 per hour for every hour in excess of 40. Kwabena faces a 20 percent tax rate. Kwabena receives $80 from the government as part of the Livelihood Empowerment Against Poverty (LEAP) program which is tax-free. There are 110 (non-sleeping) hours in the week. Graph Kwabena's weekly budget line. (10 Marks)
3. Suppose that the supply curve for private schoolteachers is Ls = 20,000 + 350W, and the demand curve for such schoolteachers is Ld = 100,000 - 150W, where L = the number of teachers and W = the daily wage.
(a). Plot the supply and demand curves.
(b). What are the equilibrium wage and employment levels in this market?
(c). What will be the effect on labour demand and supply if the government imposes a minimum wage of 200 GHS. (10 Marks)
4. Akua gains utility from consumption C and leisure L. The most leisure she can consume in any given week is 110 hours. Her utility function is U (C, L) = C × L. Akua receives $660 each week from her great-grandmother—regardless of how much she works.
(a). What will be Akua's marginal rate of substitution.
(b). What will be Akua's reservation wage? (Explain in detail)
In an open economy, where consumption depends only on disposable income and national saving is 300. Investment =400-20r and world interest is 10 per cent. If govt spending increases by 100, does investment change. Why
a. let β>0 be the discount factor, present and solve for both the competitive equilibrium and the steady state of the two-sector economy. With the use of phase diagram, identify the saddle path.
b. Fourth, explain how you can incorporate a government into your model in Part (c) to illustrate the crowding-out effect.
c. Finally, suppose now we allow the output price level in Part (b) to vary. Explain how we can introduce nominal rigidities and therefore price dynamics to this economy. You should explain both methods commonly used in the macroeconomic literature.
How do I solve this NI question when MPC is increased by 20% and government spending is increased by 6%?
Given:
C= 200+0.6Y
I= 250
G= 200
R= 20
Suppose you have been told that the marginal propensity to consume for Kenya is 0.75. By how much will consumption and savings change if aggregate expenditure (i.e. Disposable income) is increased by ksh.1million?
