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b) Demand function is given by
i) Find the interval of prices for which demand is positive.
ii) Express total revenue TR = PQ as a function of price. When is total revenue maximized?
iii) For which price is the own-price elasticity equal to -1?
What are development plans for Johannesburg(Gauteng)
Indicate which type of market can be characterized by the following features:
___________a. consumer choice of products
___________b. need for advertising
___________c. extraordinary profit even in the long-run
___________d. firm determine his own price
___________e. use of non-price competition
___________f. easy entry into the market
___________g. product sold maybe homogeneous or differentiated
___________i. firm has little power to control price
What can you say about the existing actions and concepts of the country
regarding STI?
As announced in the 2021-2022 National Budget, the Fijian Government is supporting formal and informal sector employees on Viti Levu who are affected by the pandemic through monthly payments of $120 for a period of six months (August 2021 – January 2022). The Fiji Sun dated 23rd August, 2021 reports “Attorney-General and Minister for Economy yesterday tweeted that: “Days ahead of schedule, we have met the once-in-a-century COVID-19 crisis with one of the largest assistance payouts in history. $72m was paid in unemployment benefits to 200,000 Fijians. In the coming days, we’ll reach 60,000 more bringing the total payout to around $94m.”
As an economist you are trying to assess this COVID-19 benefit scheme. In the essay critically evaluate the above COVID-19 Unemployment Assistance from the Fijian Government. Follow the rubric below – have an introduction, body and conclusion.
Max has the utility function U(x, y) = xy + x. The price of x is $2 and the price of y is $1. Max’s Income is $11. How much x does Max demand? How much y?
If his income doubles and prices stay unchanged, will Max’s demand for both goods double?
Professor Five likes wine. He is especially fond of Red Wine. His wine budget is $200 per month. He is considering a purchase of three different types of Red Wine. The first, bottled by the UltraBoutique Winery has a price of $50 per bottle. The second, produced by the Good Enough Winery is priced at $20 per bottle. The third, produced by the High Volume winery, carries a price of $5 per bottle. While Prof. Five believes the UltraBoutique wine is noticeably better than either of the other two, he is unsure whether UltraBoutique is ($50/$20)=2.5 times as good as Enough. Similarly, he is unsure whether Good Enough is worth ($20/$5)=4.0 times as much as High Volume.
Question: Discuss Prof. Five’s budget constraint for these three wines.
Suppose the average income of a consumer decrease from R18 000 to R12 000. As a result, the quantity of product A demanded by the consumer increases from 200 units to 280 units. Use the ARC formula to calculate and classify the income the elasticity of demand for product A.
