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A consumer has P3,000 to spend on goods x and y. The market prices of these two goods are Px = P150 and 3y = P50.
a. What is the market rate of substitution between goods X and Y?
b. Illustrate the consumer's opportunity set in a carefully labeled diagram.
c. Show how the consumer's opportunity set changes if income increases by P3,000.
Every point on the long run average cost curve is a tangancy point with some short run marginal cost curve and that there are infinite number of short run marginal cost curves
Draw a graph showing how marijuana legalization might affect the supply and demand curves in the market for beer in Washington and explain why you think such changes to the beer market would happen.
gross national product birr 5000, indirect taxes birr 580, net domestic product birr 5900, net national product birr 4250 the a) calculate gross domestic product b) net national income at factor cost c) calculate net factor income
The market for wheat has the following demand and supply schedules:
PRICE (kwacha) QUANTITY DEMANDED QUANTITY SUPPIED
4 10,000 8,000
8 8,000 8,000
12 6,000 8,000
16 4,000 8,000
20 2,000 8,000
a) Graph the demand and supply curves. What is the equilibrium price and quantity in this
market? (5 Marks) What is unusual about this supply curve?[1] Why might this be true?[1]
b) If the actual price in this market were above the equilibrium price, what would drive the
market toward the equilibrium? (1 Marks)
c) If the actual price in this market were below the equilibrium price, what would drive the
market toward the equilibrium? (1 Marks)
d) Differentiate inferior good from Normal good [1 mark]
What are the main features of the perfectly competitive market?
b) With the help of well-labeled diagrams, compare the short run equilibrium of a firm under a
perfectly competitive market structure and a monopoly market structure. (14 marks)
why the market demand curve is the horizontal rather than the vertical summation of individual of individual demand curve?
Explain each of the following statements using supply-and-demand diagrams.
a) “When a cold snap hits Florida, the price of orange juice rises in supermarkets throughout the
country.” (2.5 Marks)
b) “When the weather turns warm in New England every summer, the price of hotel rooms in
Caribbean resorts plummets.” (2.5 Marks)
c) “A strike by steelworkers raises steel prices.” (2.5 Marks)
d) “The price of station wagons rises.”
The market for wheat has the following demand and supply schedules:
PRICE (kwacha) QUANTITY DEMANDED QUANTITY SUPPIED
4 10,000 8,000
8 8,000 8,000
12 6,000 8,000
16 4,000 8,000
20 2,000 8,000
a) Graph the demand and supply curves. What is the equilibrium price and quantity in this
market? (5 Marks) What is unusual about this supply curve?[1] Why might this be true?[1]
b) If the actual price in this market were above the equilibrium price, what would drive the
market toward the equilibrium? (1 Marks)
c) If the actual price in this market were below the equilibrium price, what would drive the
market toward the equilibrium? (1 Marks)
d) Differentiate inferior good from Normal good [1 mark]
#333702 on Dec 2022