Search & Filtering
Suppose the market has following demand and supply equations
Demand Qd: 380-10p
Supply Qs: 80 + 5p
p is the price
a) calculate the price at which market is in equilibrium
b) now if the government imposes a fixed tax of r on the suppliers, what will be the price buyers pay and sellers receive, quantity, and government revenue from tax (as function of r). What tax level maximizes the revenue the government collects from tax?
if you are an analyst at the ministry of transport and the minister proposes that the toll of 50p would now be 1.00ghc and the elasticity of demand for the motorway is 0.3. Do you think this is politically a good decision?
2. Do you think the price support system would help farmers in Ghana?
3. Explain the concept of market failure.
1. Consider the world consisting of two countries, Country A and Country B. Each country has 840 units of labour, the only input. In Country A, it takes 12 unit of labour to produce one unit of good X and 7 units of labour to produce one unit of good Y. In Country B, it takes 6 units of labour to produce one unit of good X and 14 units of labour to produce one unit of good Y.
a. What is the opportunity cost of producing a unit of good X in Country A? Why?
b. In autarky, what would be the relative price of good X in Country A? In Country B? Why?
c. What is the Country A’s marginal product of labour in good X and in good Y, and what is the Country B’s marginal product of labour in good X and in good Y?
e. How big is the economic cost of the laws that restrict specialisation and trade between Country A and Country B?
a. After several years of trade, Country A and Country B pass new laws stating that half of each country’s labour force must be used in each industry. In other words, half of Country A’s must produce good X and half must produce good Y. The same is true in Country B. Under the new laws, how many good X and good Y will Country A produce? Country B? Why?
TC=2Q³-2Q³-4Q+10. What is TFac in short run?
cournot model
What is the elasticity of supply of a good if a producer cannot easily change the quantity supplied of that good
Reason Why all Giffen Goods are Inferior whereas not all Inferior Goods are Giffen.
In at least three well composed paragraphs, please describe the effect that changes in business taxes, personal income, and transfer payments have on a country’s gross domestic product (GDP).
The inescapable economic fact is that
