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Sharp Inc., a wholly Ghanaian owned company specializes in the production of hand
sanitizers branded as Quin. The company has branches in all the regions in Ghana with its
head office located at Cape Coast. It employs 1,200 people and pays an average of GHȼ
550.00 as income tax to the government of Ghana on a monthly basis. Suppose that seven
thousand, eight hundred and twenty (7,820) units of Quin are produced and supplied by Sharp
Inc. but the quantity demanded for Quin is eight thousand (8,000) units. Ceteris Paribus, a
GHȼ 20.00 change in the price of Quin results in a change in quantity demanded for and
supplied of 4 and 5 units, respectively. [Hint: change in X due to change in Y is given as ].
Given the above information:
a) Determine the equilibrium price and equilibrium quantities of Quin.
Two expansionary monetary policy government which can be taken by government? (10 marks)
Two expansionary fiscal policy steps which can be taken by government? (10 marks)
What does it mean when we say that supply is perfectly inelastic?
a. A two-year-old study indicate that the price elasticity of demand for internet was about 1.3. If a 10MB connection currently costs PKR 2000 a month and the Transworld wants to increase its revenue by 10% should it increase or decrease its price.
b. Due to the Covid situation the people are stuck at home and have nothing to do much except online engagement. Should the PED of users stay same or change? Why?
The "Greasy Wrench" shop specializing in auto repairs rents a building at the. In the short run, it can vary its output (the number of cars fixed) only by varying the number of mechanics it employs. Each Greasy Wrench employee is paid a fixed wage.
Over the years, the owner of "Greasy Wrench", has tried hiring different numbers of workers. The data about the total output(Total product)for each number of workers are given in the table below
number of workers
1 Total product(TP)
2 5
3 14
4 30
44
50 Average Product(AP)
Marginal Product(MP)
54
5
6
Complete the table by calculating the Average Product(AP) of Labor and Marginal Product(MP) of Labor corresponding to each number of workers.
b. At which worker does the Law of Diminishing Marginal Returns start working? How do you know?
c. When Mr. Wei's son looked at the table, he said to his dad: "Hiring 5th and 6th person makes no sense!" Do you agree? Explain.
Why was agricultural sector declared as a critical industry and exempt from the hardest lockdown regulations
Distinguish between the cardinal utility theory and the ordinal approach
Define the law of diminishing MU in details?
Differentiate between value and price and what are the determnenents of value?
Discuss the kinds of data?
