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Starting from equilibrium,how would the consumer respond to:
i.Arise in the price of kenkey?
ii.A fall in the price of fish?
If the price elasticity is -3 and RM 100 is the marginal cost of product X, what should be the optimal sale price?
(1)
Qd = -20 + 3p
Qd = 220 - 5p
(2)
Qd = -45 + 8p
Qd = 125 - 2p
5. The Cobb–Douglas production function is
y " za
1 zb
2 a ' 0, b ' 0
Show that MP1 " ay/z1, MP2 " by/z2 .
What is the MRTS21? How does it vary with: (a) y; (b) z2 /z1?
Draw the isoquant m
The free rider problem refers tothe temptation of individual to let others provide the public goods. With relevant example show that purely individualistic mechanisms will not generate the optimal amount of public good because of the free rider problem.
What is the purchasing power parity and arbitrage, and how do you explain them?
"Kaisin, a South Korean, is in Bangkok to spend and shop."
Explain how the above transactions affect Thailand's imports, exports and net exports.
"You and your friend (native Thai) go to the game store and buy the latest PS5"
Explain how the above transactions affect Thailand's imports, exports and net exports.
"Liza, a Thai living in Singapore, bought a car made in Thailand"
Explain the impact of the above transaction on Thailand's imports, exports, and net exports.
"You (Thai native) went to the music store and bought Korean K-pop records."
Explain the impact of the above transaction on Thailand's imports, exports, and net exports.
