Microeconomics Answers

Given the below info, about an OPEN economy, calculate the equilibrium level of income?

Consumption function =100+0.7YD. Investment = 200. Govt spending =15. Tax = 0.2 Exports 100. Imports 100

Answer is 859
But can you help explain how they get to 859

Paul mabaso's average utility from the consumption of 8 chocolate s is 25 utils per slab.if the marginal utility of the 9 slabs ?explain.what will happen to his total utility

Suppose the consumption function is C=100+0.95YD. If the tax rate changes from t=0 to t=30%, then the increase in govt spending that leaves equilibrium income unaffected is what ?

YD= disposable income

The answer is 570 , but can you help explain how they got to this?
Tks

The demand for ice cream cones is P=1600 and Qd is 2
The supply of ice cream cones is P =400 and Qs is 1. The price of a cone is expressed in cents, and the quantities are expressed in cones per day. To find the equilibrium price (P*) and the equilibrium quantity (Q*), substitute Q* for QD and QS and P* for P. (8 marks). (FOR QD, P=a-bQd and for QS, P=c+dQS).

2. The demand and Supply Schedules for potato chips are:
Price(rand per bag) Quantity demanded(millions of bags a week) Quantity Supplied(millions of bags a week)
5 160 130
6 150 140
7 140 150
8 130 160
9 120 170
10 110 180


a. Draw a graph of the potato chip market and mark in the equilibrium price and quantity. (10 marks)
b. if the price is R6 a bag, is there a shortage or a surplus and how does the price adjust? (5 marks)

1. The demand and Supply Schedules for potato chips are:
Price(THIS IS INDIVIDUAL WORK.).
rand per bag) Quantity demanded(millions of bags a week) Quantity Supplied(millions of bags a week)
5 165 130
6 160 140
7 150 150
8 130 160
9 120 170
10 110 180


a. Draw a graph of the potato chip market and mark in the equilibrium price and quantity. (10 marks)
b. if the price is R6 a bag, is there a shortage or a surplus and how does the price adjust? (5 marks)

b. If the marginal cost of planting and harvesting an acre is $27,000 per acre for each of the five acres, how many acres should the farmer plant and harvest?

Which of the following is true of the profit-maximising level of employment in a perfectly competitive labour market?

(1) the marginal revenue product equals the value of marginal product
(2) the marginal revenue product equals the marginal cost of labour
(3) the marginal product equals the marginal revenue product
(4) the marginal product equals the marginal cost of labour

At what price should a firm produce to maximize profit in a perfectly competitive market

(1) where price equals marginal cost
(2) where price equals marginal revenue
(3) where price equals total revenue
(4) where price equals average revenue

(B) which of the following correctly characterises a perfectly competitive labour market?

(1) a large number of firms and a large number of workers
(2) imperfect information
(3) employees and employers having individual control over the market wage rate
(4) very few skilled workers

carpentry. He wishes to pursue a career in carpentry (a childhood dream) which he has studied part-time and is now equipped to take on clients. In his current position he earns a rate of R1000 per day and if he were to pursue a career in carpentry he would earn R800 per day. Due to the flexibility of the employment conditions at the higher education institution he works for, Tom can negotiate the number of days he works at and will receive a rate of remuneration based on the number of days worked.
Question 1
1.1 Construct a production possibility frontier to illustrate Tom’s earnings pot ential between the two careers if initially he was not working as a carpenter, then he worked one week per month, then two, then three and finally four weeks per month (assuming only four weeks in a month).