Microeconomics Answers

Jenga is a popular game where the players have to remove and replace blocks to build a higher (and more unstable) tower. Jenga blocks are made of wood. If there is an increase in the price of a substitute for jenga and, simultaneously, an increase in the price of wood, the equilibrium price of jenga will:

1.either increase, decrease, or stay the same, and the equilibrium quantity could either decrease or increase.

2.either increase, decrease, or stay the same, and the equilibrium quantity will decrease.

3.increase and the equilibrium quantity will increase.

4.increase and the equilibrium quantity will either increase, decrease, or stay the same.

What would you expect to happen to the price of chicken samosas if the price of flour decreased and the price of chicken meat decreased?

1.The equilibrium price will decrease and the equilibrium quantity will be indeterminate.

2.The equilibrium price will decrease and the equilibrium quantity will increase.

3.The equilibrium price will be indeterminate and the equilibrium quantity will increase.

4.The equilibrium price will be indeterminate and the equilibrium quantity will increase.

Since one of the actors in a popular television series has been spotted wearing pink sun glasses, pink sun glasses is a must for every fashion conscious person. At the same time, a technological innovation reduces the costs of producing pink sun glasses. As a result, the equilibrium price of pink sun glasses will:

1.decrease and equilibrium quantity will either increase, decrease, or stay the same.

2.either increase, decrease, or stay the same, and equilibrium quantity could also either increase, decrease, or stay the same.

3.increase and equilibrium quantity will either increase, decrease, or stay the same.

4.either increase, decrease, or stay the same, and equilibrium quantity will increase.

Suppose we observe that the equilibrium quantity of a particular good has increased significantly over the past 5 years, with virtually no change in the equilibrium price. The most likely explanation is that, over the past 5 years:

1.supply has decreased but demand has increased.

2.both supply and demand have increased.

3.both supply and demand have decreased.

4.supply has increased but demand has decreased.

Use micro (and relevant macro) economic analysis to justify your decision of relocating your business from one country to a particular country.

Find the integral of (y2 -1) dx-2dy = 0

When the price of a good increased by 50 percent, quantity demanded decreased by 100 percent. What is the absolute value of the price elasticity of demand?

*Production volume for product A was estimated at 1000 units.

*Only 80% production was achieved.

*Each unit of product A requires 0.5 hours at an hourly rate of N$8.50.

*80% production volume was produced at 45 minutes per unit at an hourly rate of N$8.00

*Buys raw materials from local suppliers at N$3.50 per kilograms.

*Two kilograms were used per unit.

*Total monthly budgeted manufacturing overheads costs amounted to N$950

*Actual monthly manufacturing overheads cost was N$1200

*Lungameni Enterprises production manager view that manufacturing overheads costs be absorbed on basis of direct labour cost. There was no opening inventory and all units produced were sold.

Required:

1.For the information above calculate the gross profit / loss.

2.Any recommendation for Lungameni Enterprise production manager