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Sharp Inc., a wholly Ghanaian owned company specializes in the production of hand sanitizers
what is economic
‘‘Gaining extra revenue is easy for any producer—all it has to do is raise the price of its product.’’ Do you agree? Explain when this would be true and when it would not be true.
“To an economist, a resource is ‘scarce’ only if it has a positive price. Resources with zero prices are, by definition, not scarce.” Do you agree? or does the scarce convey some other meaning?
1. If an individual’s preferences are described by the utility function U(X1 , X2 ) = X12 + X22,
a) graph the indifference curve for U = 20 and U= 40.
b) Find the optimal consumption quantities if P1 = US$2.50 ; P2 = US$ 7.50; and M = US$ 60.
1. The monthly market demand curve for calculators among engineering students is given by
P = 100 – Q. where P is the price per calculator in dollars and Q is the number of calculators purchased per month. If the price is UD$ 30, how much revenue will calculator makers get each month? Find the price elasticity of demand for calculators at this point. What should calculator makers do to increase revenue?
Discuss Plato’s Allegory of the Cave with special focus on its epistemological and ethical implications. (In your answer you must demonstrate both knowledge of the allegory itself as well as interpret its epistemological and ethical “messages”) [100 marks]
Malita has K150 of disposable income to spend each week and cannot borrow money. She buys Milk balls and a composite good. Suppose that Milk balls cost K2.50 per bag and the composite good costs K1 per unit.Sketch Malita’s budget constraint.What is the opportunity cost, in terms of bags of Milk balls, of an additional unit of the composite good?Suppose that in an inflationary period the cost of the composite good increases to K1.50 per unit, but the cost of Milk balls remains the same. Sketch the new budget constraint.What is the opportunity cost of van additional unit of the composite good?Suppose now Malita demands a pay raise to figjht the inflation. Her boss submits and raises her salary so that her disposable income is now K225 per week. Sketch the new budget constraint. Is Malita better off?What is the opportunity cost of an additional unit of the composite good?
The monthly market demand curve for calculators among engineering students is given by
P = 100 – Q. where P is the price per calculator in dollars and Q is the number of calculators purchased per month. If the price is UD$ 30, how much revenue will calculator makers get each month? Find the price elasticity of demand for calculators at this point. What should calculator makers do to increase revenue?
