Economics Answers

Given U=f(x,y)=Xa Yb and the budget constraint as M=PxXpyY

With the aid of appropriate diagram, illustrate income and substitution effect for an increase in price of goods x

1. If the discounted amount is ₱8500 while the discount rate is 22% then what is the future amount of the money?

2. Compute the annuity of the money which has future worth of ₱50 000 in 5 years if it compounded monthly at the rate of 11%?

3. What is the equivalent effective rate of interest compounded quarterly if the nominal rate is 14.5%?

The internet has allowed for an improvement in the dissemination of

information, including in the labour market. In the context of a model with

matching frictions, we can interpret this as an increase in the matching efficiency, A.

If that is the case, what would the model predict? In answering this question, use a

model with matching frictions

2.3 Differentiate between product market and labour market (Use diagrams that explain the interactions in the markets). [04] 

2.2 Market structures are referred as the competitive environment in which the buyers and sellers of the product operate. A market consists of all the actual and potential buyers and sellers of a particular product. Discuss thoroughly oligopolistic and perfect competitive market structure and give examples of each form of the market structure.

Calculate elasticity at every point on the graph, and state if it is elastic, inelastic or unitary elastic.

The demand function for rose is Q= a - 5p and the supply function is Q= e + 2p + 0.1t, where a and e are positive constants and t is the average temperature in a month. Show how the equilibrium quantity and price vary with temperature?

Briefly explain how a hike in fuel prices would affect your business costs, sales, competitiveness, and profit. Use one paragraph

Estimated demand function for processed pork is Q=171-20p+20pb+3pc+2y. Using the estimated demand function for processed pork, show how the quantity demanded at a given price changes as price of Beef (pb), decreases by $ 0.95 a year?