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- a Suppose M=8, P1=4, P2=2. Graph the budget set for this consumer.
How can you compare the benefits to the cost?
Suppose there is a purchase of bonds by the central bank and a simultaneous tax cut. We know with certainty that this combination of policies must cause
Select one:( If you sure, with explanation please)
A.
a reduction in output.
B.
an increase in the interest rate.
C.
a reduction in the interest rate.
D.
an increase in output.
1. A perfectly competitive firm produces 100 units of a good and the market price per unit of good is Birr 18. If the given firm is known to earn a normal profit of Birr 6 per unit, how much is the firm’s total cost of production at this level?
Consumption of tomato (X)and Potatol(y) Per month.
assume Currently Price of tomato is 50 $Per kg
& Price of Potato is 10 $ per kg. It Wility function
Of Mr mulugeta is given by Tu=5yx^{2} find the
quantities of tomato and Potato that maximizes
his utility ?
1. Gorgeousleny with an income of P150 would like to buy two goods. Let us say juice and bread. Price of juice is P12 and price of bread is P6. If gorgeousleny will buy the ist 5 juices she is entitled to a 50% off. Draw the graph.
After a week gorgeousleny went back to the store and will still buy her two favorite goods with the same income of P150 and price of bread and juice is constant. but this time the promo of 50% off is applied after the ist 5 juices. Draw the graph. .
a. ) Measure the qty. of bread on the vertical axis and the qty. of juice on the horizontal axis. Label both graph with its corresponding points, pt. A for bread and point B for juice. the combination of bread and juice label it as point C.
b.) For both graph, What is the slope from point C to point B? ; What is the slope from from point A to point C?
6. Explain the effect on the production of ice cream, if the price of raw milk decreases.
7. Explain why government applies sin taxes on goods that are bad for your health (and addictive), for example alcohol and cigarettes.
You are the manager of a firm that produces and markets a generic type of soft drink in a competitive market. In addition to the large number of generic products in your market, you also compete against major brands such as Coca-Cola and Pepsi. Suppose that, due to the successful lobbying efforts of sugar producers in the United States, Congress is going to levy a $0.50 per pound tariff on all imported raw sugar—the primary input for your product. In addition, Coke and Pepsi plan to launch an aggressive advertising campaign designed to persuade consumers that their branded products are superior to generic soft drinks. How will these events impact the equilibrium price and quantity of generic soft drinks?
You are the manager of a firm that produces and markets a generic type of soft drink in a competitive market. In addition to the large number of generic products in your market, you also compete against major brands such as Coca-Cola and Pepsi. Suppose that, due to the successful lobbying efforts of sugar producers in the United States, Congress is going to levy a $0.50 per pound tariff on all imported raw sugar—the primary input for your product. In addition, Coke and Pepsi plan to launch an aggressive advertising campaign designed to persuade consumers that their branded products are superior to generic soft drinks. How will these events impact the equilibrium price and quantity of generic soft drinks?
