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A survey by Namibian statistics agency indicated that kapana is Namibian favourite. For each of the following, graphically indicate the possible effects on demand, supply or both as well as equilibrium quantity of kapana.
(a) a severe drought in Namibia causes farmers to reduce the number of cattle in their herds by a third-quarter of their stock . These farmers supply need that is used for kapana meat .
(b) a new report by the veterinary council of Namibia reveals that kapana does in fact have significant health benefits
(C) the discovery of cheaper animal feed by Neudamm Bush-to-feed that lower the price of cattle
(d) New technology that lower cattles cost of producing
buyers in the chocolate market demand 200 units of chocolate when price is zero and decrease the purchase of chocolates by 2 units for every one unit increase in price. write down the equation of the demand function in the form of Q= f(P)
public wage bill in south a brief explanation of the public wage bill in south Africa? (it is advisable to illustrate trends by means of graphs and tables) why is it a problem in SA? in the discussion provide indication on what made it to be large, how it can be controlled?
a) Identify the impact of an increase in the income from Rs. 1,500 to Rs. 1,800 on Inayah’s consumption level. Also illustrate it using the two-dimensional labeled diagram. (1 Mark)
b) Assume that Inayah’s consumption of milk and cookies give her following level of utility:
(2 Marks)
Quantity
MU milk
MU cookies
1
400
450
2
350
200
3
200
150
4
100
100
5
70
60
6
30
30
7
0
0
i. Find the optimal level of consumption.
ii. Find the consumer equilibrium using the two-dimensional labeled diagram.
Inayah is a rational consumer who consumes milk and cookies only from her monthly income of Rs. 1,500. If the price of milk is Rs. 500 per liter and the price of one pack of cookie is Rs. 300, answer the following questions:
a. Given the information above write the equation of the budget line and illustrate the same through the two-dimensional labeled diagram. (1 Mark)
b. If Inayah spends all of her income on consuming one good, find: (1 Mark)
i. how much cookies she could afford?
ii. how much milk she could consume?
The investors of Smith Autos have put up $500,000 to construct a building and purchase all equipment required to wash cars. The investors expect to earn a minimum return of 10% on their investment. If the money to set up the business had been borrowed from a bank instead, the car wash owners would have paid a 10% interest rate. The car wash is open 50 weeks per year and washes 800 cars per week. Whether operative or not, the company must pay $1,000 per week return to investors and $1,000 per week as insurance. The variable costs for the 800 weekly washes includes $1,000 labour cost and $600 materials cost. There are many car washes of equal quality and service in the area and they charge $5 per car wash.
b) Graphically represent the company's performance, showing profit or loss. (1 Mark)
A firm produces two substitute goods . Their demand curves and total cost function are given below : 2 2 P1 = 130 - 401-02 P2 = 160-201-5Q2 TC = 201 +201 O2 + 402 ( a ) Determine the profit maximizing outputs of both goods . ( Restrict your answers to 2 decimal points ) ( b ) Find the price elasticity of demand . ( c ) Evaluate the second order " Hessian " required for profit to be maximized .
The investors of Smith Autos have put up $500,000 to construct a building and purchase all equipment required to wash cars. The investors expect to earn a minimum return of 10% on their investment. If the money to set up the business had been borrowed from a bank instead, the car wash owners would have paid a 10% interest rate. The car wash is open 50 weeks per year and washes 800 cars per week. Whether operative or not, the company must pay $1,000 per week return to investors and $1,000 per week as insurance. The variable costs for the 800 weekly washes includes $1,000 labour cost and $600 materials cost. There are many car washes of equal quality and service in the area and they charge $5 per car wash.
a) Based on your knowledge of the different forms of market structure, do you think Smith Autos should stay in business? Show calculations. (2 Marks)
If the demand for Labour increases then the equilibrium quantity will decrease and the equilibrium wage rate increases
Consider the production function: Y= (a) Derive marginal physical product and average physical product equations. (b) Calculate the value of X when MPP is equal to zero. (c) Calculate the value of X when MPP cut APP at its maximum point and the transition that is happening in terms of Phases of production? (d) Justify why stage/phase two of production is regarded as rational stage.
