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During the ongoin pandemic, discuss about the elasticity of demand for hand sanitizers with an appropriate graph
Monetary base is defined as currency in circulation plus banks' deposits at the central bank.
(a).Give an example of an event that could lead to an increase in the amount of monetary base needed to make a given amount of transactions?
(b). Is it plausible to make purchases without using monetary base?Illustrate your answer(s) with relevant examples
(a).Give an example of an event that could lead to an increase in the amount of monetary base needed to make a given amount of transactions?
(b). Is it plausible to make purchases without using monetary base?Illustrate your answer(s) with relevant examples
(b) Consider the following Table 1 which represents unit labour requirements for the
production of commodity X and Y by country A and B, and answer the questions that
follow:
Table 1: Unit labour requirement for production of Good X and Y by Country A
and B
Commodity X Commodity Y
Country A 2 4
Country B 12 6
(i) Which country among A and B has absolute advantage in producing commodity X
and which has in producing commodity Y? Give reason.
(ii) Which country among A and B has comparative advantage in producing commodity
X and which has in producing commodity Y? Give reason.
(iii)Suppose after trade each country specialises in production of commodity in which it
has a comparative advantage, which country will specialise in producing commodity
X?
production of commodity X and Y by country A and B, and answer the questions that
follow:
Table 1: Unit labour requirement for production of Good X and Y by Country A
and B
Commodity X Commodity Y
Country A 2 4
Country B 12 6
(i) Which country among A and B has absolute advantage in producing commodity X
and which has in producing commodity Y? Give reason.
(ii) Which country among A and B has comparative advantage in producing commodity
X and which has in producing commodity Y? Give reason.
(iii)Suppose after trade each country specialises in production of commodity in which it
has a comparative advantage, which country will specialise in producing commodity
X?
Per unit Price (Rupees) Quantity Demanded (Thousand MV) Quantity Supplied (Thousand MV)
20 25 14
24 22 16
26 18 18
28 16 20
Requirements:
Keeping in mind the above table, you are required to:
B. Calculate the price elasticity of demand and price elasticity of supply when per unit price of electricity is rupees 24.
20 25 14
24 22 16
26 18 18
28 16 20
Requirements:
Keeping in mind the above table, you are required to:
B. Calculate the price elasticity of demand and price elasticity of supply when per unit price of electricity is rupees 24.
Consider the financial crisis 2007-2009 in USA.
1. Explain the origin of this crisis. Provide a summary of this crisis, consisting of the reasons
of this crisis, and the breadth and extent of the crisis. Identify countries and markets
involved in the crisis (200 words). (1 mark)
Now, assume that the crisis has been continuing for 10 years. We call this period as a long
run period.
2. Explain the effect of this crisis on USA’s GDP in long-run? (200 words) (3 marks)
3. Explain the effect of this crisis on USA’s inflation rate in long-run? (200 words) (2 marks)
1. Explain the origin of this crisis. Provide a summary of this crisis, consisting of the reasons
of this crisis, and the breadth and extent of the crisis. Identify countries and markets
involved in the crisis (200 words). (1 mark)
Now, assume that the crisis has been continuing for 10 years. We call this period as a long
run period.
2. Explain the effect of this crisis on USA’s GDP in long-run? (200 words) (3 marks)
3. Explain the effect of this crisis on USA’s inflation rate in long-run? (200 words) (2 marks)
Economics
1. On April 2, 2020, Luckin Coffee Inc. and several underwriters were hit with a shareholder suit alleging the company made false and misleading statements that caused its stock price to be inflated. The company’s stock price dropped by 75% when an internal investigation in April 2020 found that millions of dollars in sales were fabricated.
Analyze the risks involved in the Luckin Coffee case and provide possible solutions for alleviating or eliminating these types of risks.
2. On April 20, 2020, the price of West Texas Intermediate for delivery in the month of May fell as low as minus $40.32 a barrel, becoming negative for the first time in history. This might have a huge impact on the oil futures trading.
Analyze the reasons why oil price might become negative and further elaborate the impact of the negative oil futures price on futures markets and futures trading mechanism.
Analyze the risks involved in the Luckin Coffee case and provide possible solutions for alleviating or eliminating these types of risks.
2. On April 20, 2020, the price of West Texas Intermediate for delivery in the month of May fell as low as minus $40.32 a barrel, becoming negative for the first time in history. This might have a huge impact on the oil futures trading.
Analyze the reasons why oil price might become negative and further elaborate the impact of the negative oil futures price on futures markets and futures trading mechanism.
Economics
1. On April 2, 2020, Luckin Coffee Inc. and several underwriters were hit with a shareholder suit alleging the company made false and misleading statements that caused its stock price to be inflated. The company’s stock price dropped by 75% when an internal investigation in April 2020 found that millions of dollars in sales were fabricated.
Analyze the risks involved in the Luckin Coffee case and provide possible solutions for alleviating or eliminating these types of risks.
2. On April 20, 2020, the price of West Texas Intermediate for delivery in the month of May fell as low as minus $40.32 a barrel, becoming negative for the first time in history. This might have a huge impact on the oil futures trading.
Analyze the reasons why oil price might become negative and further elaborate the impact of the negative oil futures price on futures markets and futures trading mechanism.
Analyze the risks involved in the Luckin Coffee case and provide possible solutions for alleviating or eliminating these types of risks.
2. On April 20, 2020, the price of West Texas Intermediate for delivery in the month of May fell as low as minus $40.32 a barrel, becoming negative for the first time in history. This might have a huge impact on the oil futures trading.
Analyze the reasons why oil price might become negative and further elaborate the impact of the negative oil futures price on futures markets and futures trading mechanism.
i. When the price of goods falls, and price of other goods and consumer income remain same what happen with consumption/demand of that goods whose price falls and other goods (both are substitutes for each other).
. The market for biscuit consist of two firms. Competition in the market is such that each. Of the tow firms independently produces a quantity of output taking the output of the other firm as given and these quantities are then sold in the market at a price determined by the total amount produced by the two firms. The short-run total cost functions of the firms are given by:
STC 1 = 0.1q 1 2 + 20q 1 + 100,000
STC 2 = 0.4q 2 2 + 32q 2 + 20,000
The two firms produce a homogenous product, the market demand is:
Q = 4,000 − 10P
If a Cournot equilibrium is achieved, calculate:
i. The equilibrium price.
ii. The equilibrium output of firm 1.
iii. The equilibrium output of firm 2.
iv. The pure profit of firm 1.
v. The pure profit of firm 2.
STC 1 = 0.1q 1 2 + 20q 1 + 100,000
STC 2 = 0.4q 2 2 + 32q 2 + 20,000
The two firms produce a homogenous product, the market demand is:
Q = 4,000 − 10P
If a Cournot equilibrium is achieved, calculate:
i. The equilibrium price.
ii. The equilibrium output of firm 1.
iii. The equilibrium output of firm 2.
iv. The pure profit of firm 1.
v. The pure profit of firm 2.
Suppose rent control is in force in a particular town, with the rent fixed at a level which is lower than the equilibrium rent. Which one of the following is likely to happen if rent control is abolished?
