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If the price of one of the goods rises by 5 per cent, what will happen to the demand for the other good, holding other factors constant?
The demand function is Q = 200 - 5p, and the supply function is Q = -40 + 3p.determine the equilibrium price and quantity
Is there theoretically ever a situation in economics where accounting profit is equal to economic profit?
Explain the difference between efficiency and equity.
Elucidate the role of the government in enhancing efficiency and equity
Assume you are the Minister of Finance and need to raise revenue by choosing to tax a specific good, such as cigarettes or jewellery. Suppose that cigarettes have an inelastic demand, while jewellery has an elastic demand. Based on their elasticity, would you tax jewellery or cigarettes? Explain.
The following table shows the daily supply and demand for chicken burgers at a sporting event:
Price (RM) Quantity demand (units) Quantity supply (units)
4.00 110 420
3.50 160 380
3.00 240 240
2.50 320 160
2.00 410 96
a) What is the equilibrium price of chicken burgers? Discuss your reason.
b) If the organizer of this sporting event decide to set the price at RM4.00, how many chicken burgers should be sold? Write your answer.
c) One of the burger stall in this sporting event is offering free fries for every 3 chicken burgers purchased but customers. Describe how does this offer may affect customers demand?
The following table shows the daily supply and demand for chicken burgers at a sporting event: Price (RM) Quantity demand (units) Quantity supply (units) 4.00 110 420 3.50 160 380 3.00 240 240 2.50 320 160 2.00 410 96 a) What is the equilibrium price of chicken burgers? Discuss your reason. b) If the organizer of this sporting event decide to set the price at RM4.00, how many chicken burgers should be sold? Write your answer. c) One of the burger stall in this sporting event is offering free fries for every 3 chicken burgers purchased but customers. Describe how does this offer may affect customers demand?
1. Given utility function U(x,y) = X1/4Y3/4, Where price of X=8Br and Price of Y = 2 Br and income of the consumer is 480 Br;
A. Compute the utility maximizing level of X and Y
B. Calculate the marginal rate of substitution of X to Y at equilibrium and interpret the result
C. Compute the total utility at equilibrium
a The values of consumer price index (CPI) for 2005 and 2018 are 78.8 and 272.6 respectively while the average annual income of poultry farmer is given as N216,000 and N360,000 accordingly. Comment on the welfare of the poultry farmer using the purchasing power of the income received between, the two years under consideration.
Use a graph to explain the effect of an imposition by the government of a maximum price in the face mask market.
