Microeconomics Answers

An increase in the production of beef will lead to a decrease in the production of leater(made from cattle hides)

C=100+1/2 y^d

I=50-25r

G=100=T

Find equilibrium output assuming interest rate is 15%.

Find IS curve equation and show graphically

Find slope of IS curve.

Government has decided to use expansionary fiscal policy by increasing government spending and tax to 150?

Md=25y-80r,Ms=2400, p=2

a)       Find equilibrium output equation. And Y* when r=12%

b)     Find LM curve equation

c)      Find slope of LM curve.

d)     MS increased to 3000

3. Find equilibrium r

4. Find equilibrium y

The cost of sunflower seeds has increased. Sunflower seeds are an input when sunflowers are produced. Explain verbally how this change will affect the market for sunflowers.

The population in country C decreases, due to a lower birth rate. At the same time, there is an increase in the cost of fertilizer, which is used to grow vegetables. Explain how the market for vegetables will be affected by these changes. Clearly indicate how the equilibrium price and equilibrium quantity will be affected by these changes. Make use of a combination of diagrams and verbal explanation to explain your answer.

The cost of sunflower seeds has increased. Sunflower seeds are an input when sunflowers are produced. Explain verbally how this change will affect the market for sunflowers

Due to substantial increases in prices in Country A, the real income level of the population in Country A decreases. Show on a diagram how the decrease in the income level in Country A will affect the demand for meat, which is a normal good. Also indicate how the equilibrium price and equilibrium quantity of meat will change in Country A.

Explain the term Industrial policy. Discuss how

the Industrial Policy of Ghana successfully

protect infant industries.

Suppose the marginal utility and total utility of Peter mamokos weekly consumption of bananas are both positive and that he subsequently consumes fewer bananas per week.What will happen to his marginal utility and total utility of bananas.Explain (06)