Search & Filtering
Using a circular flow diagram, illustrate the flow of income and spending for a model including the foreign sector. Clearly describe and indicate leakages the direction of the flies.
4. Solve the following system of equations.
50π₯+20π¦=1800 10π₯+3π¦=300
3. The production function of a firm is described by the following equation πΈ=ππ,ππππ³βππ³ π where L stands for the units of labor.
a) Draw a graph for this equation. Use the quantity produced in the y-axis and the units of labor in the x-axis.
b) What is the maximum production level?
c) How many units of labor are needed at that point?
2. Considering the previous supply line, determine if the following demand function corresponds to the market demand equilibrium stated above. πΈπ«=ππππβππ.
1. Consider the market supply curve which passes through the intercept and from which the market equilibrium data is known, this is, the price and quantity of equilibrium π·π¬=ππ and πΈπ¬=ππππ.
a. Considering those two points, find the equation of the supply.
b. Draw a graph of this line.
Explain the problem with imposing competitive pricing in the case of a natural monopoly.
Explain the problem with imposing competitive pricing in the case of a natural monopoly.
5. Consider the demand and supply functions for the notebooks market.
ππ·=10,000β100π ππ=900π
a. Make a table with the corresponding supply and demand schedule.
b. Draw the corresponding graph.
c. Is it possible to find the price and quantity of equilibrium with the graph method?
d. Find the price and quantity of equilibrium by solving the system of equations.
Given utility function U= where PX = 12 Birr, Birr, PY = 4 Birr and the income of the consumer is, M= 240 Birr. A. Find the utility maximizing combinations of X and Y. B. Calculate marginal rate of substitution of X for Y (MRSX,Y) at equilibrium and interpret your result
Illustrate and explain how an increase in household income will affect the equilibrium price and quantity in the market for mobile data
