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Market surveys show that there are two types of consumers for frozen yogurt. The first type like frozen yogurt and have an inverse demand curve of P =5 − 21Q. The second type is crazy about frozen yogurt and has an inverse demand curve of P = 20 − Q. In the town of Lagos, there are only 2 consumers: one of them likes frozen yogurt and the other is crazy about frozen yogurt.
1. Using the individual demand curves above, derive the market demand for frozen yogurt in Lagos. Plot the market demand curves.
2. Suppose that the market supply for frozen yogurt in Lagos is given by QS = 2+P. Find the equilibrium price and quantity. How much does each consumer buy at the equilibrium price?
Market surveys show that there are two types of consumers for frozen yogurt. The first type like frozen yogurt and have an inverse demand curve of P =5 − 21Q. The second type is crazy about frozen yogurt and has an inverse demand curve of P = 20 − Q. In the town of Smallville, there are only 2 consumers: one of them likes frozen yogurt and the other is crazy about frozen yogurt.
Using the individual demand curves above, derive the market demand for frozen yogurt in Smallville. Plot the market demand curves.
2. Suppose that the market supply for frozen yogurt in Smallville is given by QS = 2+P. Find the equilibrium price and quantity. How much does each consumer buy at the equilibrium price?
Market surveys show that there are two types of consumers for frozen yogurt. The first type like frozen yogurt and have an inverse demand curve of P =5 − 21Q. The second type is crazy about frozen yogurt and has an inverse demand curve of P = 20 − Q. In the town of Lagos, there are only 2 consumers: one of them likes frozen yogurt and the other is crazy about frozen yogurt.
1. Using the individual demand curves above, derive the market demand for frozen yogurt in Lagos. Plot the market demand curves.
2. Suppose that the market supply for frozen yogurt in Lagos is given by QS = 2+P. Find the equilibrium price and quantity. How much does each consumer buy at the equilibrium price?
The price elasticity for rice is estimated to be -0.4 and the income elasticity is 0.8. At a price of S0.40 per pound and a per capita income of $20.000, the demand for rice is 50 million tons per year,
a. Is rice an inferior good, a necessity. or a luxury? Explain.
b. If per capita income increases to $20.500, what will be the quantity demanded of rice?
c. If the price of rice increases to $0.41 per pound and income per capita remains at $20.000, what will be the quantity demanded
Affordable and reliable electricity has been a crucial building block of our modern cities, industries and lifestyles. Australia has been blessed with an abundance of resources and energy, giving us a competitive international advantage in cheap, secure power.
Governments state and federal have conspired to forfeit that advantage with policies designed to make electricity supplies more expensive and less reliable in order to reduce carbon dioxide emissions. While worldwide greenhouse gas emissions have been rising substantially these policies have reduced our emissions by an amount that is minuscule and inconsequential in global terms. Yet we continue down this path.
Labor are arguing against privatisation of the electricity assets, arguing that they should be kept in public hands because are still profitable for the state, delivering $1.7 billion to state coffers last year, and that power prices would be likely to rise under the plan.
Problem Statement
Most state governments have sold their electricity enterprises wholly or partly. Victoria and South Australia fully privatised their systems by the early 2000s. NSW partially privatised its network business after 2015. Queensland privatised the retail sector but maintained public ownership of the network and some electricity generation.
Answer this question, Bellow
Which political party would you support, if your decision were solely based on the continued implementation or abolishment of this energy policy?
Justify and present your findings in a presentation.
Demand and supply of brazilian nuts
Market surveys show that there are two types of consumers for frozen yogurt. The first type like frozen yogurt and have an inverse demand curve of P =5 − 21Q. The second type is crazy about frozen yogurt and has an inverse demand curve of P = 20 − Q. In the town of Smallville, there are only 2 consumers: one of them likes frozen yogurt and the other is crazy about frozen yogurt.
Using the individual demand curves above, derive the market demand for frozen yogurt in Smallville. Plot the market demand curves.
2. Suppose that the market supply for frozen yogurt in Smallville is given by QS = 2+P. Find the equilibrium price and quantity. How much does each consumer buy at the equilibrium price?
1. A consumer enjoys commodities x and y according to the utility function U(x,y) =10X Y
a. Maximize consumer’s utility assuming that px= 6TL , py = 4TL and that the total income is 50 TL
Calculate the expenditure function
An individual earns wage income (W) at the rate of Rs. 30,000 per month. He also owns physical assets
that were worth Rs. 600,000 at the beginning of the fiscal year but now have a market value of 690,000.
The individual’s income tax liability is determined under a proportional tax system (with ATR = MTR =
7.5% ) on the basis of his net worth at the end of the fiscal year. He is also subject to paying wealth tax @
2% per annum and a capital gains tax @ 1.5% per annum. Calculate total tax liability of the individual
when the tax system allows for
(a) zero inflation, and
(b) 12% inflation.
On the basis of your calculations, explain what is the correct way of taxing capital gains in the presence of
inflation?
Suppose that the supply and demand for good H is described by the following equations:
QS= - 150+0.40P
QD = 600-0.2P
The production of H also creates marginal external costs of $165 per unit of H. Assuming that H is sold in
a competitive market, what is the market price? How many units of good H will be produced per year at
that price? What is the socially efficient output of H? Will taxing H @12.5 percent be socially optimal?
What alternate tax policy you can suggest to achieve social efficiency? Also calculate the incidence of each
of the taxes.
