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Find the price for good Z and the quantity supply for good X (show all the calculations) if:
(i) The elasticity of supply is equal to 1 and the price increases from $40 to $50.
(ii) If the elasticity of demand is 0.5 and the quantity demanded decreases from 95.000 to 85.000.
(iii) Draw the graph and indicate the equilibrium price and quantity.
Price Per Tonne ($) Quantity Demanded Quantity Supplied
40 150 80
50 120 X
60 110 110
80 95 115
Z 85 120
110 80 140
Explain each breakdown please and watch out as some of the numbers have decimals. Thank you for the help in advance
A company imports a product from China at a cost of $50 per unit. The product is imported with an import tariff of 20% and it is sold for $100 per unit. The total sales revenues for the company were 85.000. If the government increases the import tariff per unit of the product to 30% and the elasticity of demand is 3 find the following:
(i) How many units of this product the company will sale if the price rises the same amount with the import tariff (20 Marks)
(ii) Calculate if the revenues of the company will increase or decrease with the increase of import tariff (20 Marks)
Explain each breakdown, please the total revenues that have 85.000 there is a decimal.
Find the price for good Z and the quantity supply for good X (show all the calculations) if: (i) The elasticity of supply is equal to 1 and the price increases from $40 to $50.
(ii) If the elasticity of demand is 0.5 and the quantity demanded decreases from 95.000 to 85.000.
(iii) Draw the graph and indicate the equilibrium price and quantity.
Price per Tonne ($) Quantity Demanded Quantity Supplied
40 150 80
50 120 X
60 110 110
80 95 115
Z 85 120
c) Clearly describe substitution effect and income effect for a fall in price for a normal good and an inferior good
The World Health Organisation (WHO) global deaths as a result of road traffic accidents are 1.35 million per year with more than half of these being pedestrians, cyclists, and motorcyclists. In 2015 pollution from urban transport caused an average loss of 9 months of life expectancy and 482 000 premature deaths per year in the European Region. The economic cost of these health effects was valued at more than US$ 1.2 trillion per year.
1. Apply relevant economic theory to explain how, and analyze why, urban transport systems are failing to deliver efficient market outcomes.
2. Evaluate the range of policy options that could be used to ensure efficient and sustainable urban transport systems in the future.
Suppose that the average revenue of a short run perfectly competitive firm is 2 and its marginal and fixed costs are given as MC=3Q2-8Q+6 and TFC=10 then
A. Determine the level of profit at equilibrium and identify whether the firm makes positive profit ,normal profit or incure profit
B. What is the price level required for the firm to stay in the market ?
a short run production function is given as, Q=L3- 2L2 - 4L+40 determine the number of laborers that should be used to maximize total product
Q2. Explain in detail the shutdown and exit conditions for a perfectly competitive firm.
Clearly describe substitution effect and income effect for a fall in price for a normal good and an inferior good
Assuming there are two goods X and Y and two persons, analyze the exchange of goods between the two using the Edge worth Box framework indicating the Pareto efficient allocation
