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Breifly discuss the factors that determine demand for an insurance policy and how they different then normal determinant demand of a commodity?
A consumer has a utility function . The prices of and are 3$ and 4$, respectively and his income is 70$. Find the demand bundle at these prices?
Assume a consumer has $40 to spend and for both products the marginal utilities are shown in the following table: Quantity MUA MUB 1 35 80 2 20 40 3 12 18 Assume that each product sells for $10 per unit. a) How many units of each product will the consumer purchase? b) Assume the price of product B rises to $20 per unit. How will this consumer allocate her budget now? c) If the prices of both products rise to $20 per unit, what will be the budget allocation
The difference between what a product is willing to sell for a unit of a good and what must be received when actually selling it is called...
1 deadweight loss
2 net loss
3 producer surplus
4 consumer surplus
20. Given the electricity shortages observed in Durban in 2019, the South African government wants
to reduce electricity consumption by 5%. The price elasticity for electricity is 0.4, therefore
government should
(4 Marks)
a) Increase the price of electricity by 12.5%
b) Decrease the price of electricity by 2%
c) Increase the price of electricity by 10%
d) Decrease the price of electricity by 6%
Suppose that citizens of South Africa are advised by health authorities on the health benefits of consuming fresh ginger.
demonstrate and explain using a clearly labelled diagram, the effects of this information on the equilibrium price and equilibrium quantity of fresh ginger
Demonstrate graphically, the effect of the increase in the intercept of the demand function in (b) above on the equilibrium quantity and price. What generalization can you come up with from the resulting graphical analysis?
Given the out put Q= 2LogL + 4Logk, PL =$4, PK =$12.
Price of the goods is given Po.
A. Find the derive demand function for labour and capital.
B. Establish the supply function
C. Determine the expansion path expression for labour and capital
A firm has been the product function Q= InL +2Ink. Derive the input demand law for both L and K in term of the product price P when the facor prices are PL =2, Ok =8. Hence derive the supply function for the firm product given the out as a function of the product price .
Given Q=4LK +L^2 , Labour cost is 2 and cost is 1, find the maximum out put and the level k and L at which it is achieve when total input cost are fixed at $105
B. Verify that the ratio of marginal product to price is the same for both input at the optimiub
