Microeconomics Answers

draw a ump graph where x and y are both inferiore goods
hint ( its impossible) how can i solve this ?

The demand and supply functions of beans are respectively given as 20QB +15PB-5PR=6000 and 10QB-15PB=1200. Similarly, the demand and supply of rice are QR+PR-PB=250 and 3QR-7PR=710. PB and PR are prices of beans and rice. QB is demand of beans and QR is demand of rice. Find the equilibrium price and quantity of beans and rice. A rice and beans substitute?i

1. What is price effect. Prove that price effect is the summations of income effect and substitution effect with the help of I.C theory in inferior goods case.

b) You have been given the following information monetary assets of a country in a specific budget year:
Cash in hands of the public = Kshs. 300b (where ‘b’ represents billion)
Demand Deposits (DD) = Kshs. 400b
Other Checkable Deposits = Kshs. 150b
Traveler’s checks = Kshs. 50b
Savings Type accounts = Kshs. 2000b
Money Market Mutual Funds (MMMF) = Kshs. 1000b
Small Time Deposits = Kshs. 500b
Large Time Deposits = Kshs. 450b
i) Calculate M1 for the economy. (2 Marks)
ii) Calculate M2 for the economy. (3 Marks)
iii) Calculate the money supply for the economy. (3 Marks)
iv) Which item is not included in the calculations of M1 and M2? (2 Marks)

a) Consider a commercial bank of a country that has the following:
• reserves of 500 million
• loans of 3000 million
• customer deposits 3500 million
If the required reserve ratio is 10 %
i. Calculate:
ii. the amount that the bank is required to hold as reserves. (2 Marks)
iii. the bank’s excess reserves (2 Marks)
iv. By how much can the bank increase its loans? (3 Marks)

ON AN ENGEL CURVE WE KNOW THAT THE X ABCISSE AND THE Y ABCISS CAN BE NORMAL OR INFERIOR MY QUESTION IS CAN THEY BE BOTH INFERIOR ?

Why study economics when resources are in abundance?

Fill in the other columns of the table by calculating the marginal utilities for goods X and Y and the ratios of marginal utilities to price for the two goods. Assume that the price of both goods X and Y is $3. Be sure to use the “midpoint convention” when you fill out the table.

Is labour supply curve always positively sloped? True or false, explain.

The production function is
Q= 20 K0.5 L0.5
For the production function Q= 20 K0.5 L0.5 determine four combinations of capital and labor that will produce 100 and 200 units of output.
Plot these points on a graph and use them to sketch the 100- and 200-unit isoquants.