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) Suppose the demand for a product is given by where is the quantity and is the price in Ghana Cedis. Using calculus, estimate the effect of an increase in price from GH¢196.00 to GH¢250.00 on the welfare of the consumer
How do taxes affect the level of aggregate autonomous spending, The multiplier and the Equilibrium income in the economy
C= R60 million
I= R280 million
Goverment= R310 million
C = 0.75
1. Calculate the Autonomous expenditure
2. Calculate the Equilibrium level of income.
3. Draw a graph to illustrate the Equilibrium
Ketchup is a complement (as well as a condiment) for hot dogs. If the price of hot dogs rises, what happens to the market for ketchup? For tomatoes? For tomato juice? For orange juice?
XYZ Co. operates in a competitive market. Its Total Product (Q) is given as Q=f(L)= 2L, and it
takes the wage and price as given. Derive the firm's short-run demand for labor as a function of w
and p. How much labor will the firm hire if W=₵20 and P=₵100?
A company estimates that the demand for its product fluctuates with the
price it charges. The demand function is (05 Marks)
q= 280,000 – 400p
Where q equal the number of units demanded and p equals the price in dollars.
The cost of producing q units of the product is estimated by the function
C = 350,000 + 300q + 0.0015q2
i. Determine the number of units that should be produce in order to
maximize the annual profit.
ii. What price should be charged?
iii. What is the annual profit expected to equal?
Consumer surplus indicates that
Johnson and Johnson (J&J) provides mothers with safe and clinically proven mild baby
products. Amongst other products they also provide Listerine products. Due to the lack in sales
of the baby products, Johnson and Johnson decided to decrease the production of baby products
and increase the production of Listerine. Illustrate on a graph and explain the opportunity cost
of producing Listerine products.
Assume an individual’s preference for Fanta (Good x) and Fritters (Good y) are given by
the following utility function: U(x,y)=20= x^0.5y^0.5
REQUIRED:
i) Derive the equation for the indifference curve for this utility function
a) Think of a product produced in Belize (market price would be less than $50). Set up a demand and supply schedule of your own for that product.
b) Use the data in the demand and supply schedule to create a demand curve and a supply curve for the product. Please label the diagram completely.
c) Define “Equilibrium.” Explain what is the equilibrium price for your product and explain how you arrived at that equilibrium price.
