Other Economics Answers

The demand and supply functions for the wto independent commodities are given by

Q^d_{1 = 205-2.5 P1 - P2}

_Q^s_{1 = 1.5 P1 - 30}

_Q^d_{1 = 147.6 - 0.5 P1 - 1.5 P2}

_Q^s_{2 = P2 - 60}

_{Determine the equilibrium price quantity for this two-commodity model}

4. Suppose the following production function data. Complete [4 marks] and answer the questions below.

Labour Total Product

1 10

2 22

3 36

4 48

5 55

6 60

7 60

8 56

a) Where does the law of diminishing returns set in? Explain your answer using graph. [6]

b) Where is TP = 0 and what happens to MP curve at that point? [4]

c) Explain, using a graph, each stage/phase of the production function in terms of returns to labour.

A drop in the price of lemons from Rs 100 per kg to Rs 60 Per Kg increases the quantity demanded from 1.75 to 7 kg per week. Calculate the price elasticity of demand

The disposable income of Mehta family increases from Rs 5000 to Rs 15,000. As a result, the family‘s demand for milk and milk goods has increased from 30 liters to 60 liters per month. Calculate the income elasticity of demand. (

From the given table calculate TR, MR and AR and highlight the relationship between total revenue (TR) and marginal revenue (MR). (

Correlation and Regression are two sides of the same coin”. Explain