Search & Filtering
Recently, the Transport Association of Zambia increased the price of bus fares for all long routes in Zambia. Specifically, the price of tickets between Lusaka and Livingstone increased from 200 Kwacha to
250 kwacha. The demand equation between Lusaka and Livingstone.
a) Calculate the old price quantity demanded level
Marks]
b) Calculate the new price quantity demanded level
c) Work out the Price Elasticity of Demand for tickets from Lusaka to Livingstone between 200
kwacha and 250 kwacha [5
Marks]
d) Briefly discuss the Price Elasticity of Demand for tickets from Lusaka to Livingstone between 200 kwacha and 250 kwacha and clarify how bus fleets revenues are expected to respond to the price increase. [5 Marks]
e) What would be the Price Elasticity of Demand for tickets from Lusaka to Livingstone if the price rises again from 250 kwacha to 300 kwacha? [5 Marks]
f) Explain why the answer in part d) and part e) are different.
Why the supply curve shifts to the left and to the right ?
- Which of the following is not a characteristic of perfect competition in the short run? A. All firms produce where average costs are minimised.
- B. All buyers and sellers have perfect knowledge of market conditions.
- C. All firms are price takers.
- D. The equilibrium level of output occurs where marginal cost equals marginal revenue.
Due to the complexity of raising sheep, the farmers have reduced the number of sheep by fifty percent. These farmers supply wool to the factories that manufacture sweaters.
Also, according to the sources, wool is an excellent temperature regulator. Therefore, it is proved to have good health benefits.
In the market, there is artificial yarn, used to manufacture switchers similar to wool, available at lower prices.
Of late, there are new and improved technologies are available to manufacture woolen sweaters with lesser quantities of raw material, leading to a reduced cost of manufacturing woolen sweaters.
According to the sources, people of our country started liking sweaters made out of wool that primarily comes from sheep. Analyze the following situations and examine the impact on demand and supply of both quantities and price of woolen sweaters. a) Due to the complexity of raising sheep, the farmers have reduced the number of sheep by fifty percent. These farmers supply wool to the factories that manufacture sweaters. b) Also, according to the sources, wool is an excellent temperature regulator. Therefore, it is proved to have good health benefits. c) In the market, there is artificial yarn, used to manufacture switchers similar to wool, available at lower prices. d) Of late, there are new and improved technologies are available to manufacture woolen sweaters with lesser quantities of raw material, leading to a reduced cost of manufacturing woolen sweaters.
Ambience Ltd is a fashion company and very concerned about demand and supply
fluctuations. Continuous change in Market demand and supply affects the price and
quality of goods in the market. Analyze the following situation for ambiance Ltd. and
explain your reasons in two or three sentences.
a) What will happen to the share prices and quantity of the company, if they
announce good quarterly results?
b) What will happen to the share price if the company gets caught in some
unethical activity.
c) If monsoon is good and crop of cotton is good, how it will affect the company
d) During Pandemic, how it will affect the company price and quantity
demanded.
. Ambience Ltd is a fashion company and very concerned about demand and supply
fluctuations. Continuous change in Market demand and supply affects the price and
quality of goods in the market. Analyze the following situation for ambiance Ltd. and
explain your reasons in two or three sentences.
a) What will happen to the share prices and quantity of the company, if they
announce good quarterly results?
b) What will happen to the share price if the company gets caught in some
unethical activity.
c) If monsoon is good and crop of cotton is good, how it will affect the company
d) During Pandemic, how it will affect the company price and quantity
demanded.
Make sure to explicitly indicate what sectors you are representing, and what sort of assumptions each event implies (i.e., a neutral effect vs a sector-biased effect). The latter follows from your assumptions on the factor intensity of the sector you are representing.
a) Reducing import taxes (tariffs) on primary inputs
b) Increasing the expenditure on research and development
c) The introduction of greater flexibility in labour markets (new government laws
enabling easier hiring of workers)
d) Increasing skilled migration into a country
e) The discovery of new mineral deposits in a country
Given the demand equation Qx = 1200 – 0.6 Px + 0.8Y + 0.5Py + 1.9 A,
where Qx = Quantity demanded of Good X; Px = Price of Good X in Rs; Y = income of the consumer in Rs; Py = Price of Good Y; and A = Advertising expense in Rs thousands
a) Are goods X and Y substitutes?
b) Is the good X an inferior good?
c) How much is the own price elasticity of demand if Px= 10,000 and Qx = 5000
d) How much is income elasticity at Qx = 5000 and Y = 50,000
e) Explain the meaning of coefficient of advertising in the equation
#340153 on Dec 2023