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the price elasticity of rice is estimated to be -0.4 and the income elasticity is 0.8. At a price of $0.40 per pound and a per capital income of $20,000, the demand for rice is 50million tons per year.
a. is rice an inferior good, a necessity or a luxury? Explain
b. if per capital income increases to $20,500, what will be the quantity demanded of rice?
1. Suppose that the short-run production function of certain cut-flower firm is given by: Q= 4KL -0.6K2 -0.1L2 where Q is quantity of cut-flower produced, L is labour input and K is fixed capital input (K=5).
a) Determine the average product of labour (APL) function.
b) At what level of labour does the total output of cut-flower reach the maximum?
c) What will be the maximum achievable amount of cut-flower production?
“Wants are unlimited and keep on changing yet a single Want is satiable” Can you explain what does this statement imply?
If people always spend 25 per cent of their incomes on housing, then the income elasticity of demand for housing is
A boat builder uses labor and capital to produce boats as described by the following production function: Q (L, K) = 120K'L? - KL? In the short-run, the firm's capital is fixed at 10 units. a. Obtain equation for the firm's total product curve. b. Obtain the firm's average and marginal product functions
3. How would the following changes in price affect total revenue? That is, would total revenue increase, decrease, or remain unchanged?
a. Price falls and demand is inelastic.
b. Price rises and demand is elastic.
4. The price elasticity of demand for beef is about 0.60. Other things equal, this means that a 20 percent increase in the price of beef will cause the quantity of beef demanded to____.
5. Carlsberg recorded an increase of 33% of net profit for the 1st quarter of 2016, despite of increasing taxes.” Why? Could you provide a reasonable explanation using both economic and business knowledge..
Exchange Rates market. Use a separate diagram to show how each of the following factors affect demand or supply for “US dollar”? (assume price of US$1 is RM4 ringgit (put Price of USD on y-axis and Quantity of USD on x-axis):
a. US investors are selling Malaysian stocks
b. U.S. firms buy large quantity of palm oil from Malaysia.
c. More Malaysians travelling to US for studies and holiday.
d. Increased popularity of US made goods in Malaysia.
In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X;(2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X. removing the subsidy placed on product X years ago will?
Brand 2017 2018 20191 Lenovo. 28 30 30
2 HP. 13 14 15
3 Dell. 12 13 14
4. Asus. 7 7 8
5 Acer. 6 6 6
6 Others. 34 30 27
1. The above table and figure shows recent market share data for personal computer in Indonesia. Use the above data, relevant online resources and economic reasoning to answer the following questions:
(a) Describe the trend of personal computer (PC) sales by brand in Malaysia over 2017-2019 period (table 1)?
(b) Calculate the concentration ratio of PC industry (table above) for:
(i) the top three firms in the industry.
(ii) the top four firms in the industry.
(iii) compute Herfindel-index of top 5 firms in the industry
Where larger values of the constant C correspond to higher indifference curves. If good 1 is drawn on the horizontal axis and good 2 on the vertical axis, what is the slope of John's indifference curve when his consumption bundle is (x1, x2) =(4, 10)?
