Microeconomics Answers

If dairy farming is subsidised,we would expect the value of a litre of milk to be

Suppose there is a bill to increase the tax on cigarettes by $1 per pack coupled with an income tax cut of $500. Suppose a person smokes an average of 500 packs of cigarettes per year—and would thus face a tax increase of about $500 per year from the cigarette tax at the person’s current level of consumption. The income tax measure would increase the person’s after-tax income by $500.

Would the combined measures be likely to have any effect on the person’s consumption of cigarettes? Why or why not?

Explain one determinant of demand and discuss how it can affect the demand curve by giving an example.

Numeric example between rate of change and the level of change

Suppose you own an outdoor recreation company and you want to purchase​ all-terrain vehicles​ (ATVs) for your summer business and snowmobiles for your winter business. Your budget for new vehicles this year is ​$250,000. ATVs cost ​$5,000 each and snowmobiles cost ​$12,500 each.

a. Draw the budget line for your purchase of new vehicles.

Use the line drawing tool to draw a budget line. Properly label this line. Place end points one on horizontal and one on vertical axes.

Carefully follow the instructions​ above, and only draw the required objects.

b. What is the opportunity cost of one​ ATV?

The opportunity cost of one ATV is ...? ​snowmobile(s).

​(Round your answer to two decimal​ places.) i need help with question (B)

how did you get 2/3 from 8 000/12 000?

The south African economy has been experiencing either negative or stagnant growth for more than a decade. This has resulted in high level of unemployment. President Ramaphosa has promised to come up with a recovery plan as a way of reviving the ailing economy. However, despite the endeavor the government is making, more and more jobs are lost every day. The lesson learnt from other countries facing the same situation as ours is that entrepreneurship ends up as a safe-haven for those who cannot be absorbed in the mainstream of the economy (formal sector).it also serves as the bloodline of the economy.

In light of this, discuss the role that tertiary education can play in order to address unemployment problem in South Africa. (Hint: focus on the role of transforming universities into entrepreneurial universities)