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demand function- p=800-3Q
Cost function- Tc=60+40Q+Q2
requered;-
1. total revenue function
2.average revenue function
3. average cost function
4.profit maximizing output
5.profit maximizing price
Indicate whether each of the following is counted in Ghana’s gross domestic product for the year 2010. Explain each of your answers.
a. The value of a used textbook sold through an online auction in 2010
b. Rent paid in 2010 by residents in an apartment building built in 2000
c. Commissions earned in 2010 by a stockbroker
d. The value of automobiles produced in 2010 entirely in South Korea by a firm fully owned by Ghanaian citizens
e. The sale of bonds in a stock market
Let: C = consumption, Ip = investment spending (as a function of price level), G = government spending, Tx = tax revenue, Yd = after-tax income, Assume for a given closed economy:
C=100 + 0.9 Yd – 20P
Ip= 400 – 40P
G=300
T=100
Moreover, aggregate supply curve for this economy is defined by the following equation:
P=1.41 + 0.0001Y
a.According to the investment equation (Ip= 400 – 40P) as overall price level in the economy increases investment spending decreases. How could you explain this situation? Please use graphs to elaborate your answer.
b. Find the equilibrium level of overall price and aggregate output in this economy. What would be the value of consumption and investment spending at this equilibrium?
Suppose the market for frozen orange juice is in equilibrium at a price of $1.00 per can and a quantity of 4200 cans per month. Now suppose that at a price of $1.50 per can, quantity demanded falls to 3000 cans per month. At the same time assume that at a price of $1.50 the quantity supplied increases to 4500 cans per month. Draw the appropriate diagram for this market.
#339914 on Dec 2023