Economics Answers

Why do firms disclose financial information?

Assume a certain area of UENR Campus has been specifically designed to provide hostel accommodation facilities for students from low income homes. The students who stay in the area tend to stay there because they cannot afford to live in other hostel facilities on Campus, they prefer to live with students they pursue the same programme with, or there is discrimination against them in other hostel facilities on Campus Rents paid are a very high percentage of the students' income. Given the above

Would the demand for hostel accommodation in this area of the University be relatively inelastic or elastic? Explain why,

Would the supply of hostel accommodation in this area of the University be relatively inelastic or elastic? Explain why

b) Your company wishes to raise a new debt capital on stock market. Your managing director has heard of warrants and traded options and suggests that an issue of debt, accompanied by either attached warrants or traded options might be attractive to investors and have benefits for your company.
Required:
Discuss whether you consider your managing director’s suggestions to be useful.

Based on elasticity coefficient of 1.89 , explain how biltong producers can increase total revenue from the sale of biltong.

Elasticity of demand for biltong is estimated to be 1.89 .
Identify any six factors that can impact the price elasticity of demand for biltong ,and explain how each one can be applied to achieve this elasticity coefficient.

iii. Suppose that the price of one ear of corn was $0.05 in 1920, that the CPI in 1920 was 10, and that in 1990 the CPI was 180. What is the price of a 1920 ear of corn in 1990 dollars?
iiii. In 1954, Mickey Mantle earned $21,000 playing for the New York Yankees. The CPI in 1954 was 26.9, and the CPI in 2010 was 218.06. What is Mickey Mantle’s 1954 salary in 2010 dollars?

if consumers were the only ones buying goods in the economy, would the economy be at equilibrium ? Why or why not ?

1.the following information are given XYZ manufacturing company:-
- fixed costs=$35550
-variable cost per unit=50(x)
-the production volume(capacity) is 10000 units
- R(x)=80x
Required:-
based on the above information, compute the break-even point
A, in units
B, as percent of capacity
c, in dollar

You have been appointed as an economic advisor to the principle of Bright Sparks College, a firm
operating in the market for tertiary education. Over the past 18 months the following
simultaneous changes have been noticed in the market for tertiary education:
 A decrease in consumer income;
 An increase in the cost of providing tertiary education services.
Explain, with the aid of a graph, the impact of the above changes on the equilibrium price and
equilibrium quantity in the tertiary education market.

Muchuu’s mortgage was approved by Zambia National Building Society. Muchuu however, decided to purchase a model of a car called Bugatti using the mortgage. On the other hand, Muchuu had initial plans for investing money in some risky online business. He, therefore, approached a money lending institution and applied for a loan in the name of exporting goats to Democratic Republic of Congo and his loan was also approved for such a lucrative investment by the lending institution. As a student of Principles of Economics, discuss the above scenario and make relevant comparisons and distinctions.