Microeconomics Answers

is it true that the main characteristics of markets in which firms operate in the real world are different. explain.

Do you think that there should be monopoly with regards to various basic necessities like water and electricity in Nepal. Give reason.

The following data shows the demand and supply for commodity X,
Qd=960-80P
Qs=-400+240P
a) Explain to a layman what the above equations means.
b) Calculate:
i) The market clearing price.
ii) The quantity demanded and quantity supplied at equilibrium.
iii] Show this information on a well labelled graph.
iv) If supplies raise the price to $10 what is the new quantity supplied and quantity demanded
v) What is happening to the market?
vi) Using the original data , if consumers demand 100 more units at each and eevry price what is the new demand equation?
vii)Using your answer above calculate the new equilibrium price and quantity, clearly depict your answer in a diagram.
viii} What factors could have caused the shift of the demand curve?.
C) Using a diagram explain allocative efficiency

if the country plans to reduce unemployment rate during this period (with fixed exchange rate implemented), assuming perfect capital mobility presence in the market, would you recommend the government use monetary policy or fiscal policy? explain the reasons behind your recommendation with the aid of diagrams.

7. The following relations describe the supply and demand for specific good:
QD = 65000 – 10000P
QS = - 35000 + 15000P
a) Compute the following table
Price QS QD Surplus pr Shortage
$7
$6
$5
$4
$3
$2

a) What is the equilibrium price?

How to face the changes in opportunity costs as it possibly produces various combinations?

When a price rises from $3 to $5, what is the price elasticity of demand?

Hi i have tried many textbooks and online resources but cannot find the solution to the following revision questions, your help will be greatly appreciated.

1) If the supply equation is given as Q = -200 + 10p and the price of supply changes from R40 to R50. Using the arc elasticity of supply what is the price of elasticty of supply?

When accounting profit is zero what does it mean ?
none of the above
implicit cost is covered
explicit cost is not covered
implicit cost is not covered

Which is not the difference between labor and organization (manager)?
labor works for wages and organization works for profit
labor does his work and organization just sits in office
labor has to finish his own work and organization has to help all other inputs too
labor works his own task and organization manages all the inputs