Microeconomics Answers

* If the price of coffee (Good 2) rises from Rs. 45 per to Rs. 55 per pack and as a result the consumer’s demand for tea (Good 1) increases from 600 to 800 packs then calculate cross elasticity of demand of tea for coffee

most common market structure in south africa ? Explain?

Due to substantial increase in price in country A the real income level of the population in the country A decreases.show a diagram how the decrease in the income level in country A will affect the demand for meat which is a normal good?

Consider the general demand function:

Q1 = 8,000 - 16P + 0.75M + 30PR

a. Derive the equation for the demand function when M = $30,000 and P. = $50.

b. Interpret the intercept and slope parameters of the demand function derived in

part a.

C.

Sketch a graph of the demand function in part a. Where does the demand function

intersect the quantity-demanded axis? Where does it intersect the price axis?

d. Using the demand function from part a, calculate the quantity demanded when the

price of the good is $1,000 and when the price is $1,500.

e.

Derive the inverse of the demand function in part a. Using the inverse demand

function, calculate the demand price for 24,000 units of the good. Give an

interpretation of this demand price.

Suppose the Egyptian government requires cigarette smokers to pay tax on each pack of cigarettes. Draw a supply-and-demand diagram of the market for cigarettes with and without the tax. Show the price paid by consumers, the price received by producers, and the quantity of cigarettes sold before and after-tax. What is the difference between the price paid by consumers and the price received by producers? Has the quantity of cigarettes sold increased or decreased?

Why does the entire managerial economics revolve around what to produce, how to produce, and for whom to produce?

Draw a curve that represents that the more you study, the higher your GPA. Put GPA on the vertical axis and study time in hours. Label the curve "effort"

Draw a curve that represents that as the price of something decreases, the amount demanded increases. Put price on the vertical axis and quantity on the horizontal axis. Label the curve "D"

Draw a curve that shows that initially the cost of a good decreases the higher the quantity produced, but at some point the cost starts to increase instead. Put cost on the vertical axis and quantity on the horizontal axis. Label the curve "cost".

3. There are various market structures, under which each firm in an economy follows, these market structures range from perfect competition to monopoly. 

a) How do characteristics of a monopoly differ from those of a perfect competition? 

b) .Your company operates in an oligopoly market. You have been told that non price competition strategies can help you increase your sales in the short run. Would you propose and explain any 3 non price competition campaigns that you would employ for this call?

4. Research the job search theory and its applicability to daily business life

1.   Consider all the factors of production: labor, natural resources, capital, entrepreneurs, technology, and knowledge. Is each resource a vital part of the school you attend or the company for which you work? Which factors do you believe are most important to the goods and services provided by the organization?

The vital of the school you attend for which work is Knowledge

The  factor that is most is capital

2 .In Rwanda local farmers manage small plots of land for subsistence farming. However, some have benefited by selling pineapples at an agreed fixed price to an exporter. The exporter provides finances, training, fertilizers and machinery and even building materials for the farmer’s homes.  Explain the benefits which may be gained by the local community in Rwanda from the project.

·        By partnering with an exporter local farmers benefit in terms of their own capacity building and decreasing production costs.

. There are various market structures, under which each firm in an economy follows, these market structures range from perfect competition to monopoly. 

a) How do characteristics of a monopoly differ from those of perfect competition? 

b) . Your company operates in an oligopoly market. You have been told that nonprice competition strategies can help you increase your sales in the short run. Would you propose and explain any 3 nonprice competition campaigns that you would employ for this call?