Microeconomics Answers

Suppose the prices of the commodities A and B are p₁ and p₂ respectively. The consumer purchases X₁ unit of A and X₂ units of B. Suppose, the consumer has an income denoted by M and the consumer would spend the entire amount of M on these two commodities. How are p₁, p₂, X₁, X₂ and M related?

Use paragraph to distunguish between the demand curve of a perfect competition and the monopoly

Give two typical examples of near monopolies

Suppose the National Institutes of Health publishes a study finding that coffee drinking reduces the probability of getting colon cancer. How do you imagine this will affect the market for coffee? Why? Which determinant of demand or supply is being affected? Show graphically with before- and after-curves on the same axes. How will this change the equilibrium price and quantity of coffee? Explain your reasoning.

Suppose that, as part of an international trade agreement, the U.S. government reduces the tariff on imported coffee. Will this affect the supply or the demand for coffee? Why? Which determinant of demand or supply is being affected? Show graphically with before- and after-curves on the same axes. How will this change the equilibrium price and quantity of coffee? Explain your reasoning.

The short run production function Q=L^3-2L^2-4L+40. determine the amount of laborers

• The short run production Q = L^3-2L^2-4L+40 determine the number labourers should be used to maximize production.

Why was agriculturesector declared as a critical industry and exempt from the hardest lockdown regulations

The cross elasticity of demand between a McDonalds burger and a Nandos burger is

 A. negative because McDonalds burger and Nandos burger are complements.

 B. negative because McDonalds burger and Nandos burger are substitutes.

 C. positive because McDonalds burger and Nandos burger are complements.

 D. positive because McDonalds burger and Nandos burger are substitutes.

If the cross elasticity of demand between two goods is negative,

•  A. one of the goods must be inferior.
•  B. the two goods are complements.
•  C. one of the goods must be a necessity.
•  D. the two goods are substitutes.