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Suppose that a decrease in the price of X results in less of good Y sold. This would mean that X and Y
are
A. complementary goods
B. substitute goods
C. unrelated goods
D. normal goods
“It is possible that the price could rise to challenge 2011 levels and move to north of the USD$4000 per ton level."
Cocoa suppliers in Solomon Islands have all but conceded that price levels in 2011, when the price hit USD$3826 per ton, is no longer
possible.
“Those were good times, price was high, so there was a steady local supply of the beans, it was a good time to be in the cocoa
business,” said Harold, a local cocoa supplier who has since left the business.
(i) Explain the linkages between the article and the relevant microeconomic theory. Explain the content of the article to show your
recognition and understanding of the relevant economic concepts, and how its application to the real world.
(ii) With reference to the article, explain the reason for the predicted price of cocoa. Use relevant demand/supply graph to
support your answer.
. Draw a graph that shows inefficient, efficient, and unattainable point on a production possibilities frontier. Explain the production efficiency in production possibilities frontier
2. Let Qd stand for the quantity demanded, Qs stand for the quantity supplied, and P stand for price. If Qd = 20 - 2P and Qs = 5 + 3P, then the equilibrium price is
Assume the quantity demanded for a particular commodity is given by the formula (Q)= 8000P^(-1.5). Compute the elasticity of demand
examples of scarcity that you face. (microeconomic)
Why was agricultural sector declared as a critical industry and exempt from the hardest lockdown regulations
Discuss the economic effects of personal income tax?
The following table describes the production possibilities of two cities in the country of Basebalia:
Wheat per Worker per Hour Corn per Worker per Hour
Boston 6 6
Chicago 2 4
Without trade, what is the price of wheat (in terms of corn) in Boston? What is the price in Chicago?
- Draw a situation market equilibrium for Rio Juice. What happens to it in each of the following scenarios to the quantity and price of Rio Juice? Why?
- The price of Real Juice (a substitute) increases
- Government increases the minimum wages of labour workers
- The taste of majority of consumers shifts away from juice to aerated drinks (coke, pepsi) and this leads to the decrease in no. of producers of Rio juice.
- Government provides subsidies to Local juice producers while, also the income of consumers who treat juice as normal good increase
