Microeconomics Answers

Ketchup is a complement (as well as a condiment) for hot dogs. If the price of hot dogs rises, what happens to the market for ketchup? For tomatoes? For tomato juice? For orange juice? 

Ketchup is a complement (as well as a condiment) for hot dogs. If the price of hot dogs rises, what happens to the market for ketchup? For tomatoes? For tomato juice? For orange juice? 

Apart from the mismatches of supply and demand in the labour market, what other factors 

are largely contributing to inequality levels within the country

Suppose the demand function for a firm's product is given by ௗ 𝑙𝑛𝑄௫ = 3 − 0.5 ln 𝑃௫ − 2.5 ln 𝑃௬ + ln 𝑀 + 2 ln 𝐴 Where Px is the price of the product = GHS 10 Py is the price of another product produced by the firm = GHS4 M is the income of consumers = GHS 20,000 and A is the expenditure on advertising for the product = GHS 250 a) Determine the own price elasticity of demand, and state whether the demand is elastic, inelastic or unitary elastic. b) Determine the cross-price elasticity of demand between good X and Y, and state whether the two goods are substitutes or complements. c) Determine the income elasticity of demand, and state whether the good X is a normal or an inferior good. d) Determine the own advertising elasticity of demand. 

Consider a firm with the following production function: 𝑄 ≡ 𝐹(𝐿,𝐾) = 𝐿 ଴.ହ𝐾 ଴.ହ . The price of labour (L) is GHS 4 per unit while the price of capital (K) is 5 per unit. For parts (a) – (e) assume that this firm has 25 units of capital it cannot change in the short-run a) If the price of output is GHS 10 per unit, how many units of labour should the firm employ to maximize profit? b) At this quantity of labour (from part (a)), what quantity of output will the firm produce and how much profit will the firm make? c) Derive the firm’s short-run total cost function. d) Derive the firm’s marginal and average cost functions. e) What is the total cost of producing 100 units of output? For the rest of this question, assume that the firm is now free to choose any level of capital and labour. f) How many units of capital and labour will it choose to minimize the cost of producing 100 units of output?

U(x1​,x2​)="(\\sqrt{x_1}+\\sqrt{x_2})^2"

. Recall that the general demand function for the demand curves in Figure 2.2 is

Q_d = 3,200 - 10P + 0.05M + 24 P_R

Derive the demand function for D₂ in Figure 2.2. Recall that for D₂ income is 52,000 and the price of the related good is $200.

 the impact of the South African economy’s global integration on supply and demand mismatches in the labor market, consequently discussing what this entails for wage inequality levels within the country?