Microeconomics Answers

A depreciation of the rand may have inflationary

consequences in South Africa because it.

O a. Increases the costs of exports.

O b. Discourages savings.

O c. Increases the costs of imported goods.

O d. Discourages exports.

In the AD-AS model, an expansionary fiscal policy

may lead to a..

O a. rightward shift of aggregate demand and

demand-pull inflation.

O b. leftward shift of aggregate demand and

demand-pull inflation.

O c. rightward shift of aggregate supply and

cost-push inflation.

O d. leftward shift of aggregate supply and cost-

push inflation.

Paul lends R10 000 to his friend Steven for one

year. They agree that Steven would pay the R10

000 back with 5% interest at the end of the year. If

the inflation rate is 6%, which of the following

would be true for the real value of the amount that

Steven pays back at the end of the year?

O a. It would be more than R10 000 but less than

R10 500

O b. It would be more than R10 500.

O c. It would be less than R10 000.

O d. It would be exactly R10 500.

What is microeconomics

True or False

if price elasticity is less than one, a fall in price lowers the total revenue of the suppliers in question

The demand curve for the bottle of water is Qd=100-6P and the supply Qs=28+3P.what is the equilibrium price?

1. True or false

If the price elasticity is less than 1, a fall in price lowers the total revenue of the supplier's in question

2. True or false

If an increase in the price of sugar leaves the total expenditure on the sugar unchanged, then the price elasticity of the demand of sugar is equal to 1

True or false

The price elasticity of the demand for whole wheat bread is lower than the price elasticity of the demand for all kinds if bread

The demand and supply function of a good are given by

P = -3Qd +100

P =2Qs +50

Where p, Qd and Qs denotes the price, quantity demanded and quantity supplied respectively.

A. Calculate the equilibrium price and quantity.

A new fixed tax of £5 per good imposed by the government.

B. Calculate the new equilibrium price and quantity?

C. Who pays the tax?

Given the above demand equation if fixed costs are 15 and variable costs are 40 per unit.

D. Obtain and expression for profit in term of Q.

E. Sketch a graph for profit against quantity.

F. Find the breakeven point.

G. Find the quantity of products sold that given a profit of 42.

H. Find the maximum profit and the value of Q at which it is achieved.