Microeconomics Answers

Suppose you own an outdoor recreation company and you want to purchase all-terrain vehicles (ATVs) for your summer business and snowmobiles for your winter business. Your budget for new vehicles this year is $480,000. ATVs cost $12000 each and snowmobiles cost $16,000 each.

a. Draw a budget line for your purchase of new vehicles.

b. What is the opportunity cost of one ATV?

c. What is the opportunity cost of one snowmobile?

The inequality in the supply of COVID-19 vaccines between rich and poor countries is creating a serious “oversupply and undersupply” situation.

Meaning?

Campbell owns an online shop and to sell to three (3) individuals, A, B and C, whose individual demand equations are as follows:

•     A: P = 70 -1.0Q_A

•     B: P = 100 -0.5Q_B

•     C: P = 80 -4.00Q_C

The industry supply equation to be Q_S = 80+ 7P

You are required to 

a.      Determine the equilibrium price and quantity 

b.     Determine the amount that will be purchased by each individual  

Can u give an example about the dynamics analysis from the current Sri lankan economy ?

Explain critically the relationship between money supply and high powered money

With extensive explanation and graph, explain money supply and money demand

Explain in detail the value of money propounded by classical and Keynesian economics

If a production is Q=250K^0.7L^0.3 determine the marginal product of capital and marginal product of labour when k=50 and L=50

Analyze whether social benefits, social costs, etc. are affected by vaccine shortages.

Draw diagrams to illustrate. (Obligatory)

"When it comes to pandemics, inadequacies of the vaccine is an example of negative externalities in the market. Leads to market failure. The unvaccinated population poses a greater risk to society as the virus continues to spread and markets close."

Explain in detail why negative externalities lead to market failure? What exactly are negative externalities? in production or consumption?