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Find the QD=120-5P and if P=(25/100)*20
Suppose now the government decides to increase the number of quotas available to 72 units, but it keeps the price support at the current level of $72,
calculate
the consumer surplus
the producer surplus
deadweight loss
Jim and Jane have opened a new restaurant in town, JJ's Burgers. Given what you know about price elasticity of demand is Jim correct that a price increase would bring in more money? The burger sells for $10 and 200 sell each week. What is the total revenue of the burgers? Having a 10% price increase raises the price to $11. If you sell 160 burgers a week what is the % change in the quantity demanded af the prices changes? What is the price elasticity of demand? Is the price elasticity elastic or inelastic? What is the total revenue after the price increase.
Explain, with the aid of a graph, what will happen to the rand/dollar exchange rate and the equilibrium quantity of dollars if South African exports to the United States increase. (Hint: In your answer, also comment on the effect on the current account of the balance of payments as well as on the level of domestic prices.)
Suppose that Swaziland can produce either 18 tons of oranges or 9 tons of apples in a year, while Namibia can produce either 16 tons of oranges or 4 tons of apples in a year. Which of the following statements is true based on the information given above?
Show that the quantity of labor(X1) and capital(X2) that a firm demands decreases with a factor’s own factor price (w for labor and r for capital) and increases with the output price (P) when the production function is a Cobb-Douglas of the form q=AX1αX2β
assume that a pure monopolist and a purely competitive firm have the same unit costs. contrast the two with respect to price, out put profits allocation of resources and impact on income transfers
Suppose a firm produces according to the production function Q = 2L0.6K0.2, and faces wage rate ₵10, a rental cost of capital ₵5, and sells output at a price of ₵20.
a. Obtain and expression for the factor demand functions.
b. Compute the profit-maximizing factor demands for capital and labour.
1) Suppose the demand for ice cream is given by Qd = 15–p, and the supply is described by Qs = –15 + p where,p is price of ice cream in US dollars per gallon ;Qd is the quantity of ice cream demanded in gallons .Qs is the quantity of ice cream supplied in gallons.
a) What is the equilibrium price of ice cream? What is the equilibrium quantity of ice cream? Draw the supply and demand curves on one single diagram. b) Suppose that due to the changes in number of buyers and ice cream sellers the ice cream demand and supply functions have changed over time. Suppose that they are described by the following demand and supply equations :Qd = 60 - 5p Qs = -20 + 3p
