Economics Answers

How to calculate real GDP?

It’s time for Ronda to start repaying her student loans, which are amortized over the next 10 years. Her first month’s payment due is $396. How much should she expect to pay next month?

Suppose there is a monopolist in the market for a specific video game facing a demand curve: P = 34 - 0.5Q. The monopolist marginal cost curve is MC = 2, its total variable costs are TVC = 2Q and it faces a total fixed costs equal TFC = $294.
Note: Keep as much precision as possible during your calculations. Your final answer should be accurate to at least two decimal places.

a) Graph the demand curve and marginal cost curve, then derive and graph the marginal revenue curve.

b) Calculate the equilibrium monopoly quantity and price.
c) What is the profit for the monopoly?
d) What is the consumer surplus?

Suppose the central bank's monetary policy sets the interest rate according to the function:
i = 2 + 2(π - π*) with π* = 2,
and aggregate expenditure is:
AE = 140 + 0.2Y - 10i

a) What is the equation for the ADπ curve? Use 'PI' to represent π when entering your equation.

b) Plot the ADπ curve in the graph below.

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.

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.

Landlords show up at the next council meeting and demand an increase in rents. The council members (concerned about their upcoming re-election campaigns) vote to repeal the price ceiling and instead replace it with a price floor that is RM50 above the equilibrium price. what is the new market price? how many two bedroom apartments will be rented?

An increase in quantity demanded of ice-creams during summer is a movement along the demand curve. True or false? Explain.

The vertical distance between the average total cost curve and the average variable cost curve

a) Landlords show up at the next Council meeting and demand an increase in rents. The
Council members (concerned about their upcoming re-election campaigns) vote to repeal
the price ceiling and instead replace it with a price floor that is RM50 above the equilibrium
price. What is the new market price? How many two-bedroom apartments will be rented?