Economics Answers

The market supply curves and market demand curves for books are given as follows:

Supply curve: P = 0.000002Q 

Demand curve: P = 11 – 0.00002Q

The short-run marginal cost curve: MC = 0.1 + 0.0009Q

The short-run equilibrium level of output is

Market economy is a necessary evil. Discuss   

 Under what circumstances may the demand for the commodity be inelastic?     

 Discuss the view that a market economy is always preferable to a planned economy.                                       

The market supply curves and market demand curves for books are given as follows:

Supply curve: P = 0.000002Q 

Demand curve: P = 11 – 0.00002Q

The short-run marginal cost curve: MC = 0.1 + 0.0009Q

The equilibrium quantity of books is

Global warming is becoming a serious problem for mankind. According to the Coase Theorem government should leave this matter to the market to solve. Do you agree? Argue your case with the aid of economic theory.

Which of the following will definitively lead to an increase in the equilibrium quantity of a good?

an increase in demand and an increase in supply

an increase in supply and a decrease in demand

a decrease in supply and a decrease in demand

a decrease in demand and an increase in supply

What would you expect to happen to the price of chicken samosas if the price of flour decreased and the price of chicken meat decreased?

A higher coffee price (substitute for tea) will shift the demand curve to left. True/false?

Consider how the economy has performed throughout your life. Identify a time you believed the economy was in a peak or a trough. When was the economy expanding? When was it contracting? Describe the overall trajectory of the economy throughout your life.