Economics Answers

Hybird dealers bought computer equipment for R54 000 on 1 July 2018. The equipment is depreciated at 20 %according to the diminishing balance method


Prepare the depreciation and closing transfer entries in the general journal of hybird dealers on 31 March 2019 and 31 March 2020

David runs his own business. He received an offer from a company for $50,000 per year. If he sells his business, he can get an amount of $100,000. Assume the annual interest rate is 5%. David is confused to run his own business or join the company. David annual revenue from his business is enough to cover all explicit costs and has $60,000 left over. There are no additional implicit costs. Calculate David’s accounting and economic profit.

You have been given the following information about the housing market for two-bedroom rental units in Vancouver:


c. Suppose that a price ceiling of $1,200 rent per month is imposed in the Vancouver housing market, what will be the effect of this on housing market in Vancouver?
Answer:

d. Suppose that a price floor of $1,100 rent per month is imposed in the Vancouver housing market, what will be the effect of this on housing market in Vancouver?
Answer:

e. Suppose that the government imposed a tax of $1000on homeowners, who will pay this tax? show and explain in graph (in part a, above)
Answer:

f. Suppose that the government imposed a tax of $1000 on homeowners, show and explain the effect on consumer surplus, producer surplus, Dead Weight Loss, government revenue and market efficiency.

A Business Firms sells a good at the price of Rs 450. The firm has decided to reduce the price of good to Rs 350. Consequently , the quantity demanded for the good rose from 25,000 units to 35,000 units . Calculate the price elasticity of demand

Suppose u(x1, x2) = x1x2. Are x1 and x2 gross complements or substitutes? Are they net
complements or substitutes?

A firm's production function is given by Q= L2e^-0,01L

Find the value of L that maximizes the average product of labour

Burke Tires just paid a dividend of D 0 = ₱ 1.32. Analysts expect the company's dividend to grow by 30%
this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this
low-risk stock is 9.00%. What is the best estimate of the stock’s current market value?

Edward and Emmanuel expressed the preferences for red-red (plantain and beans).
Their preferences are such that Edward prefers the plantain to be dominant in his red-
red while Emmanuel prefers the beans to be dominant in his red-red. With plantain on
the vertical axis and beans on the horizontal, graph the indifference curves for Edward
and Emmanuel.

Evaluate the possible consequences of falling consumer spending for a country's macroeconomic performance?

What is the difference between Progressive and regressive taxation and how impact on South Africa