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What is the effect on the price of an audiotape and the quantity of audiotapes sold if:
a The price of a CD rises?
b The price of a Walkman rises?
c Consumers’ incomes increase?
d Workers who make audiotapes get a pay rise?
e The price of a Walkman rises at the same time as the workers who make audiotapes get a pay rise?
A cake retailer increases the price of its cakes from £2.00 to £2.60 per cake and the quantity demanded decreases from 60 cakes per day to 45 cakes per day.
The price elasticity of demand for the retailer’s cake is:
A-0.25
B-0.3
C-0.83
D-1.2
Q1.
Draw a diagram showing the effects of an increase in the price of bus journeys on the equilibrium market price and output in the weekly market for e-scooters in the UK.
Q2.
Referring to your diagram for Q1, fully explain what happens to the equilibrium market price and output of e-scooters.
Q3.
Draw a diagram showing the effects of a decrease in the wage rate of bricklayers on the equilibrium market price and output in the annual market for new houses in France.
Q4.
Referring to your diagram for Q3, fully explain what happens to the equilibrium market price and output of new houses.
"subsidies are inefficient since they lead to a deadweight loss. do you agree? use diagrams to illustrate your answer
rahul purchases only 2 goods: ice cream and chocolates. if own price elasticity (d) of demand for chocolates is 1, what is the cross price elasticity of demand for ice creams? show your calculation/reasoning
if we observe more rice is purchased this year than last year, we may conclude that demand has increased and therefore price must have increased. comment.
you are considering two cable networks for your television. tata sky charges rs. 120 per month regardless of the channels watched. hathway on the other hand charges rs. 1/ channel per month. your monthly channel demand is given by the equation cp 150-50 p, where p is the price per channel. (1) how many channels per month will you watch with each network? (ii) based on consumer surplus obtained, which provider should you choose
Consider a production function of the following form: X = 100 L , where X = output
and L = input of labor (assuming other inputs are fixed).
a. Construct a figure like Figure 6-1 and a table like Table 6-1 for inputs of L = 0, 1, 2, 3,
and 4.
b. Explain whether this production function shows diminishing returns to labor. What
values would the exponent need to take for this production function to exhibit increasing
returns to labor?
For this question, refer to the article from The Economist magazine titled “A coup in Guinea adds fuel to aluminium’s red-hot rally”.
a) The article identifies a number of factors behind the recent increase in the price of aluminium. Mention these factors and indicate whether they are demand-side or supply- side factors.
b) With the aid of a well-labeled diagram, illustrate the effects of the factors identified in part (a) above on the equilibrium price and quantity of aluminium. Pay attention to the statement in the article that “Supply constraints, however, have been more
Aluminium pricing
For this question, refer to the article from The Economist magazine titled “A coup in Guinea adds fuel to aluminium’s red-hot rally”.
a) The article identifies a number of factors behind the recent increase in the price of aluminium. Mention these factors and indicate whether they are demand-side or supply-
