Economics Answers

how i can analyze with the help of graph the possible consequences of setting price floor of sugarcane below equilibrium price?

What is store of value

Consider the market for transport. For each of the events listed here, identify with the help of graphs which of the determinants of demand or supply are affected. Also indicate whether demand or supply is increased or decreased. Then show the effect on the price and quantity of transport.
a. People decide to have less children.
b. A strike by transporters.
c. Government reduces the road tax for transporters
d. Government binds the rent above the equilibrium (e.g., set price floor above the equilibrium).

I. A family buys a house worth $326,000. They pay $75,000 deposit and take a mortgage for the balance at J12=9% p.a. to be amortized over 30 years with monthly payments.
II. Fill out the loan amortization schedule provided in the solution template for the first 5 loan payments. What do you notice about the composition of the payment amount?

A small country produces sugar domestically but also imports from other countries. The domestic supply curve is Qsdomestic=5p and the foreign supply curve is Qsforeign=10p . The demand of sugar in this country is given by Qd=100−5p .

Give the coefficients of the aggregate (i.e. combined) supply curve for this market, expressed as Qsaggregate=a+bp ..what is the value of a and b..what is the equilibrium price and quantity imported

1. Suppose that a monopolist firm has the following information
Q= 50-0.1P
TC= 25+10Q+0.5Q2
P=250- 2.5Q
A. Find the profit maximizing output (5 points)
B. Find the profit maximizing price (5points)
2. Assume that a project requires an initial investment of Br. 60,000 and the rate of return is 10%. The after taxes cash flows (or net cash flows) are as follows: (5 marks)
Year 1 = 8000 Year 4 = 20,000
Year 2 = 15,000 Year 5 = 20,000
Year 3 = 22,000
A. Calculate the payback period (PBP)
B. Calculate the Net present value (NPV)

. The design capacity for Bakery Company is 1000 loafs of bread per day. The effective capacity is 800 loafs of bread per day and the actual output is 650 loafs of bread per day. The company goal is to produce 950 loafs of bread per day. Calculate the utilization and efficiency of the operation. If the efficiency for next month is expected to be 85%, what is the expected output?

. Suppose that a monopolist firm has the following information Q= 50-0.1P TC= 25+10Q+0.5Q2 P=250- 2.5Q A. Find the profit maximizing output (5 points) B. Find the profit maximizing price (5points) 2. Assume that a project requires an initial investment of Br. 60,000 and the rate of return is 10%. The after taxes cash flows (or net cash flows) are as follows: (5 marks) Year 1 = 8000 Year 4 = 20,000 Year 2 = 15,000 Year 5 = 20,000 Year 3 = 22,000 A. Calculate the payback period (PBP) B. Calculate the Net present value (NPV)
Expert's answer

explain how changes in one varibles can lead to a shift in the money demand curve in the classical model

how graphically, that if the money demand is unstable, pegging the interest rate is better than pegging the money supply. now suppose these fluctuations were in the is curve, will you still recommend pegging the interest rates? why?