Other Economics Answers

What is communication crisis

When CBI Corporation priced notebooks at P50 each, it

sold 35 notebooks per month. Demand increased for notebooks raising the price

of it to P55 each. CBI responded by increasing its quantity supplied to 42 notebooks

per month. Using the point method for calculating elasticity, what is CBI’s

price elasticity of supply?

Answer following questions, based on the following information on national income accounts of hypothetical economy: GDP $12,000 Gross investment 1,000 Net investment 600 Net Export 3,000 Government expenditure 1,000 Government budget balance 2,000 Net factor payment from abroad -2,000 Indirect Business Tax 2,000 A) Calculate the gross private consumption expenditure of the economy B) Calculate the Gross National Product (GNP).

. Discuss in detail the difference between Perfect Competitive Market, Monopoly Market, Oligopoly Market and Monopolistic Competition Market using appropriate examples. Compare and contrast these market structures using tables.

In a market there are 20 buyers of a leather bag each having identical demand function Qd = 10 - 2P and 40 producers each with identical supply curve given by P= 4+Qs where Qd and Qs are quantity demanded and supplied respectively. A) Calculate the market equilibrium price and quantity B) Calculate the price elasticity of supply at the market equilibrium C) Calculate the price elasticity of demand at the market equilibrium D) Compute the consumer and producer surplus at the equilibrium E) What happens in the market if the price is 2 in the market? F) Is there surplus or shortage at price 15 in the market?

Assume a wheat producing farmer engaging in selling its product under perfect competition market faces cost functions as TC= Q3 -2Q2 +8Q and Average revenue of the farmer is given as Birr 8. Having this information, A. Determine the optimal level of output and price in the short run. B. Calculate the economic profit (loss) the farmer will obtain (incur) C. What will be the minimum price level the farmer gets to continue in wheat production?

A cloth producing firm in a perfectly competitive market has the following short-run total cost function: TC = 6000 + 400Q – 20Q2 + Q3 . If the prevailing market price is birr 250 per unit of cloth, A. Should the firm produce at this price in the short-run? B. If the market price is birr 300 per unit, what will be the profit (loss) of the firm at equilibrium? Should the firm continue to produce or not? C. Calculate the shut-down price of this firm?

Consider the following total cost function: TC = 2/3Q3 – 10Q2 + 200Q + 50 A) Identify the FC and VC function? B) Calculate AVC, AFC, ATC, and MC functions C) Determine the level of output at which AVC reaches minimum point and the minimum AVC at that level of output? 

Dawit plans to consume two goods (good x and good y) with a limited budget. If Dawit’s budget line has intercepts 100 units of good x and 50 units of good y and price of good x (Px) is $100. Then, answer the next three questions. A) What are Dawit’s income and Price of good y (Py) B) What is the simplified version of Dawit’s budget line equation? C) If Dawit’s utility function is given by U(X; Y) = X0.5Y 0.5, how many units of good X and good Y would he consume if he choose the bundle that maximize his utility subject to his budget constraint?

 What is Monetary Policy? Discuss the effects of each instruments of the monetary policy on money supply, interest rate, income and employment.