Other Economics Answers

1.      Sally consumes two goods X and Y, her utility function is given by the equation

U= 60XY².Thecurrent market price for X is 200 birr, while the market price for y is 100birr and her current Income is 10,000birr

A.     Sketch a set of two Indifferent curves for Sally in her consumption of X and Y 

B.     Write the expression for Sally's budget constraint graph the budget constraint and find the slope

C.     Determine the X, Y combination that maximize her utility given her budget constraint

Calculate the Impact on Sally's  optimum consumption of X and Y If the price of X increase to 300birr.

Futuristic was a newly setup firm in 2019. It is in the business of providing artwork. However, being in the business of standard art objects (non-essential items), it did not do well once it was hit by COVID-19. It has a selling price of ₹2,500 per piece and a variable cost of ₹1,000 per piece. It incurs an annual fixed cost of ₹30,00,000.

a. The manager of the business wishes to know-  the number of art pieces they must sell to be at the break-even point  the contribution margin

Following particulars has been shared for you. If fixed cost is Rs500000, selling price is Rs60 and Variable cost is Rs20

a. Calculate and describe -Breakeven point (5 Marks)

b. What could be the sales number to earn a profit of Rs 50000, at a Fixed Cost Rs 200000, Variable Cost Rs30 per unit, Selling Price Rs 60 per unit

Subway is selling good number of the veggie patty Burger on a daily basis. The production house offers a proposal to the management of getting the Veggie Patty manufactured by one of the suppler named Vishnu LLP. However, the management want to take the outsourcing decision also called as make or buy decision by evaluating the various important factors contributing to the decision

Discuss, the major considerations for evaluating the make or buy decisions

The equity shares of a firm in the current stock market has been traded at Rs60 per share. The price earnings ratio is 10 times. The Dividend payout ratio is 75%.

The total number of shares issued and outstanding as on date are 100000 equity shares of Rs10 each. Book value of each share is Rs40

Describe and Compute - Earnings per share, return on equity

Assume that you plan to take a housing loan with a tenor of 20 year. The loan has to be repaid in equal monthly installments. Considering that the loan amount is Rs. 50 lakhs and the interest rate on loan is 9% p.a., what would be the equated monthly installment (EMI)?

1.      Company consumes two goods X and Y, her utility function is given by the equation

U= 60XY².The current market price for X is 200 birr, while the market price for y is 100birr and her current Income is 10,000birr

A.     Sketch a set of two Indifferent curves for Company in her consumption of X and Y 

B.     Write the expression for Company's budget constraint graph the budget constraint and find the slope

C.     Determine the X, Y combination that maximizes her utility given her budget constraint

Calculate the Impact on Company's optimum consumption of X and Y If the price of X increase to 300birr.

A. Solve the following.

1. If price increases from 25 to 35 (P=30) and quantity demanded falls from 80 to 60 units (Q=70), what is the elasticity of demand?

2. If price decreases from 40 to 30 and quantity demanded rises from 15 to 30 units, what is the elasticity of demand?

3. If income rises 15 percent in a year and the demand for clothing by 20 percent, find the YED.

4. If 5 percent increase in the of iphone, the demand for Huawei phone increases by 20 percent, find the XED.

1. Journalize each transaction in a two-column journal, referring to the following chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.) 11 Cash 31 Emily Page, Capital 12 Accounts Receivable 32 Emily Page, Drawing 14 Supplies 41 Fees Earned 15 Prepaid Rent 51 Salary Expense 16 Prepaid Insurance 52 Rent Expense 18 Office Equipment 53 Supplies Expense 19 Accumulated Depreciation 54 Depreciation Expense 21 Accounts Payable 55 Insurance Expense 22 Salaries Payable 59 Miscellaneous Expense 23 Unearned Fees