Economics Answers

The best way to describe the relationship illustrated by the aggregate demand curve

why an increase of the wages above the inflation rate should be turned
down as it is detrimental to the economy?

Discuss how entrepreneurs might be able to make goods more price inelastic. Why might they be happier to change the price of a good that is price inelastic rather than one that is price elastic.

if the AS curve shifts to the left as productivity decreases, it will result in a combination of?

You own a home industries business where you source home made goods from a community and sell them from a shop at the local shopping center. The following transactions took place in the shop (ignore the impact of vat)

-paid R2000 in cash to home bakers
- sold R3000 goods for cash
- paid weekly wages of R2000
-Sold goods on credit to a restaurant for R1500
-received R1500 owed by the restaurant.

Define the transactions in a table format of assets, owners equity and liabilities

the supply and demand for broccoli are described by the following equations;supply QS=6p-80 Demand QD= 120-4p
a. grapgh the suppply curve and the demand curve .what is the equalibrium price and quantity?
b.calculate consumer surplus,producer surplus and total surplus at the equalibrium.
c.if a dictator who hated brocooli were to ban the vegetables,who would bear the larger burden_the buyers or sellers of brocooli?

the supply and demand for broccoli are described by the following equations;supply QS=6p-80 Demand QD= 120-4p
a. grapgh the suppply curve and the demand curve .what is the equalibrium price and quantity?
b.calculate consumer surplus,producer surplus and total surplus at the equalibrium.
c.if a dictator who hated brocooli were to ban the vegetables,who would bear the larger burden_the buyers or sellers of brocooli?

“An increase in domestic relative to foreign nominal interest rates will lead to a domestic currency appreciation in some, but not all, of the following three models: (i) the flexible price monetary model (ii) the open-economy IS-LM model and (iii) the Dornbusch overshooting model”.

Kofinatland is a hypothetical economy with the following economic indicators:
-Size of population:8million
-GDP at market price(-GDP at m.pm.)
-Subsidies: US $50 billion
-Interest paid by consumers:US $27billion
-Employees contribution to social insurance: US $200 billion
-Net factor income from abroad(NFYFA) :US $200 billion
-Capital Consumption allowance(CCA):US $80billion
-Human development index(HDI):0.91
-Indirect taxes on goods and services(ITGS):US $120billion
-Life expectancy rate:87years
-Government transfer payment: US $71.5 billion
-Factor income of foreigners in the economy(FYF): US $80 billion
-National Population growth rate: 0.5%

Determine the economy's
i. Net national product at market cost (NNP at m.px)
ii. Net national product at factor cost (NNP at f.c)
iii. Factor income of national abroad (FYN)
iv.GDP per capita ( note to use the -GDP at m.px. in your calculation)

XL Corp has estimated its demand and cost functions to be as follows:
P = 60 - 0:2Q
C = 200 + 4Q +1.2Q 2
where Q is in units, P is in $ and C is in $.
a. Calculate the profit-maximizing price and output.
b. Calculate the size of the profit.
c. Calculate the price elasticity of demand at the above price.
d. If there is a $14 tax placed on the good, so that the producer has to pay the government $14 for every unit sold, calculate the new profit maximizing price and output.
e. What would happen to profit if the firm tried to pass on all the tax to the consumer in the form of a higher price?
f. If fixed costs rise by $200 how would this affect the firm’s situation?