Economics Answers

How we can solve supply and demand equation for finding elasticity of demand and supply at equilibrium position

We know that in a closed economy with our modern two tier banking system 5 % of the money stock is cash amounting to 199 $. The ratio of outstanding loans of non bank agents at commercial banks and the outstanding loans of commercial banks at the central bank is 5 to 1. We omit banks’ retained earnings. How much $ is the reserve in this economy?

Aggregate spending on South African production comprises

Explain precisely why ‘Opportunity Cost’ is always a RELATIVE concept and is never to be construed in ABSOLUTE terms. In addition, why is the PPF function never strictly convex -what is the economic implication of strict convexity? You are free to provide appropriate examples of your choice.

b)Mr.Ali has an income of Rs.30,000 and he purchases 100 units of X-GOOD. His income decreases by 20% and now he can purchase 90 units of X-GOOD.Calculate Calculate elasticity and also mention the type of elasticity.

What is the economic term used to describe how much of an increase in income an individual would use to consume goods and services in their own economy, instead of saving it, paying it in taxes, or spending it on imports?

Graph 1. Draw graphs of 1) a tax on a good designed to raise revenue and 2) a tax on a good designed to abate an externality. Discuss the similarities and differences.

Suppose that the Fed is fixing the dollar-pound exchange rate at $2.50 = £1. If the Fed's reserve of pounds falls by £500 million, by how much would the supply of dollars increase, all other things equal?

Retail price of fuel is uniformly distributed between $2.00 and $3.50
A) Calculate the retail average price of fuel?
B) what is the probability that the price of fuel is less than $3.00
C) what is the probability that price of fuel is less than $2.00

Graphically illustrate equilibrium Qd = 1800 - 10p and Qs = 200 + 10p