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One of the basic principles of economics is that markets are usually a good way to organize economic activity. This principle is explained by the study of
Select one:
a.
factor markets.
b.
welfare economics.
c.
energy markets.
d.
labor economics.
The consumer has set a budget of $M for the consumer of good X and Y .The price of good X is $Px and the price of good Y is $py.The consumer has a utility function given by U(X,Y)=xy^2.
Find the optimal consumtpion choice of the individual and the ulitlity obtained.
Make a graph that illustrates the solution to the problem.Explain each of the following statements using supply-
and-demand diagrams.
a. When a cyclone hits Queensland, the price of
bananas rises in supermarkets throughout the
country.
b. When school holidays end, the price of picture
tickets plummets.
c. When a war breaks out in the Middle East, the price
of petrol rises, and the price of a used Ford Falcon
falls.
The oil is produced by a single refinery (a monopolist) which is owned by an entrepreneur called Sluggo. The demand for oil which is produced in Sluggo's refinery is Q= 50-P. The cost function of the refinery is given as: C(Q)=8+4Q.
It is also known that there is a (constant) marginal external cost of 6$ per unit of oil production resulting from environmental damage associated with production.
(a) As a profit maximizer how much would Sluggo like to produce?
Quantity
MUA MUB
1 36 30
2 24 22
3 20 16
4 18 12
5 16 10
6 10 4
A) Based on the cardinal analysis, what is the combination of the two goods that gives maximum utility to the consumer?
B) What is the total utility at the utility maximization level?
Mary: à ¢ It is only excess profits that are wiped out by competition. Managers get paid for their work; owners get a normal return on capital in competitive long-run equilibriumà ¢ no more, no less.à ¢
Demand curve q= 10-2p
Price elasticity of demand = -2/3 at price p* how much is p*
1. Suppose, the market demand and market supply function of rice are QD = 30 – 3P and QS= 20 + 2P respectively. Find out – i) Market price and quantity of rice. ii) If due to the increase in the increase in the income of the consumers, the demand increases to QD= 40 - 3P, what will happen to the market price of potato? iii) If the consumers expect that in near future the price of rice will be decreased, how it will affect the current market price of rice? Use graph if required. iv) If the rice farmers of Dinajour send most of their rice to Dhaka City for higher price, what may happen to the market price of rice in Dinajpur? Use graphs. v) If the price becomes Tk. 4, what will happen to the market? vi) If the price becomes Tk. 2, what will happen to the market?
#339914 on Dec 2023