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The price elasticity of demand for urban transit fares has been estimated to lie between -0.1 and -0.6. Based on these results, what is the economic argument for raising transit fares? What political arguments might local governments and transit authorities encounter in opposition to these economic arguments?
Consider the market for ice cream . Using appropriate diagrams, explain how each of the following events will impact the equilibrium price and quantity of ice cream.
a. The population falls.
Explain why a perfectly competitive firm will not shut down in the short run when making losses. Illustrate the answer with an appropriate diagram
Due to substantial increases in prices in country A,the real income level of the population in country A decreases.show on a diagram how the decrease in the income level in country A will affect the demand of meat,which is a normal good.also indicate how equilibrium price an equilibrium quantity will change in country A.
Suppose the production function of a firm is given as X=0.5L ½ K½ price of labor and capital are given as $5 and $10 respectively, and the firm has cos out lay of$ 600
I. The profit maximizing level of L & K to employ.
II. The MRTSL,K at optimum
Consider the following problem: After your 8 hours a day of sleep, you have 16 hours a day to divide between leisure and study. Let leisure hours be the X variable and study hours be the Y variable. Plot the straight-line relationship between all combinations of X and Y on a blank piece of paper. Be careful to label the axes and mark the origin.
In question 1, what is the slope of the line showing the relationship between study and leisure hours? Is it a straight line?
The population in country c decreases,due to lower birth rate. At the same time, at the same time there is an increase in the cost of fertilizer, which is used to grow vegetables. Explain how the market for vegetables will be affected by this changes. Clearly indicate how equilibrium price and equilibrium quantity will be affected by this changes.make a combination of diagram and verbal explanation
Select and name a market of any well-known product (left upon your imagination), draw its market diagram, state and name four different factors that might cause changes, showing the changes in equilibrium price and quantity.
With reference to the PPC, assume Malaysia is producing 2 types of goods - manufactured goods and agricultural goods. It wants to increase both the output by 20% in 5 years. What steps should the government take to achieve this goal?
Suppose the demand and supply curves for a product is given by
Q=500-2P
Q= -100 +3P
a. Which is the supply curve and why?
b. Graph the demand and supply curves.
c. Compute the equilibrium price and quantity.
d. If the current price is 100, what is the quantity demanded and quantity supplied? How would you describe this situation and what would you expect to happen in this market?
e. Suppose that the demand changes to Q=600-2P. Find the new equilibrium price and quantity and show this on your graph.
