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The relationship between the concept of elasticity & total revenue.
May I have detailed explanation.
Give three reasons why a demand curve slopes downwards?
May i have a detailed answer.
Explain graphically how indifference curve analysis can be used to derive a demand curve?
I. Explain the Law of diminishing return and why is it applicable especially in agriculture sector?
P = 101 - 10Qi
, where P is price in dollars per cup and Qi is the number of cups demanded
per week by the i
th consumer. Find the market demand curve using algebra. Draw an
individual demand curve and the market demand curve. What is the quantity demanded by
each consumer and in the market as a whole when lemon is priced at P = $1/cup
) In a certain market, the demand for peach was given as QD = 400 -3P, the
first day of marketing in 2020, in August 2020, the demand for peach is now
given as QD = 200 -3P. From the statement above tell in one sentence the
change in demand; what did you consider as the indicator? Support your answers by
sketching the equations above on the same graph sheet.
b) In a certain market for Sobolo when the price of the drink was GHC 3 per
bottle, the quantity demanded was 12 bottles. On another day, when the price
per bottle was GHC 5, quantity demanded was 6. Use the information to write
down and equation for demand. Now, what will be quantity demanded if price
per bottle was 6? If we restrict price to the same demand curve, what will
happen if price is less than GHC 2?
c) Complementary in supply are goods for which producing more of one
requires producing more of the other. Using the definition, write down any 5
real life examples of complements in supply
Given the demand function P = 20 – 5Q, find the price elasticity of demand when price of the commodity is 5 Birr per unit. Mention if the demand is price elastic or inelastic at this point
Suppose the short run market price a competitive firm face is Birr 9 and the total cost of the
firm is: TC = 200 + Q + 0.02Q 2. Answer the questions that follow.
(A) Calculate the short run equilibrium output and profit of the firm.
(B) Derive the MC, ATC, and AVC and calculate the values at the short run equilibrium output.
(C) Calculate the producers’ surplus at the equilibrium output.
(D) Find the output level that will make the profit of the firm zero.
