Economics Answers

a)Price of Pepsi is Rs.120 and its quantity demanded is 300 bottles. Suppose due to Raman Pepsi company reduces price of it to Rs. 108 ,due to it its demand increases to 360 bottles. Calculate elasticity and also mention the type of elasticity.

a)Price of Pepsi is Rs.120 and its quantity demanded is 300 bottles. Suppose due to Raman Pepsi company reduces price of it to Rs. 108 ,due to it its demand increases to 360 bottles. Calculate elasticity and also mention the type of elasticity.

A. Based on the international trade effect, how would an increase in the price level in South Africa affect the exchange rate and aggregate demand?

1. Rand will appreciate, the quantity of aggregate demand will decrease
2. Rand will depreciate, the quantity of aggregate demand will increase
3. Exchange rate will remain unchanged, the aggregate demand will decrease
4. Exchange rate will increase, the aggregate demand will increase

Tribeda corporation has just paid a dividend of RM1.20 per share.the dividend is expected to grow at 6% a year for the next 3 years, and then to grow at 8% a year thereafter.

If the required rate of return is 14%, compute the value of the share today.

Evaluate the introduction of the payments to support households and income during
the COVID-19 crisis from the perspective of substantive and procedural
judgements of fairness.

Q2.Calculate Elasticity under following questions:
a) Price of Pepsi is Rs.120 and its quantity demanded is 300 bottles. Suppose due to Raman Pepsi
company reduces price of it to Rs. 108 ,due to it its demand increases to 360 bottles. Calculate
elasticity and also mention the type of elasticity.
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.
c) Calculate elasticity and also mention the type of elasticity of the following:

Price of Milk Pack (1litre) Quantity demanded of Olpers Milk
Rs.140 200 liters
120 160

I need to buy tires. Standard set $600 last 3 years or $800 last 4 years. Which do you buy? With my calculations I believe it is the $800 tires with only a difference of $96.

Sarita signed up with Netflix for a fixed fee of $16.99 per month. For this fee, she can receive up to 3
DVDs at a time in the mail and exchange each DVD as often as she likes. She also receives unlimited
instant access to movies being streamed from Netflix to her computer or TV. During the average month in
2010, Sarita received and watched 6 movies sent to her through the mail and she watched an additional 13
movies which were streamed to her computer. What is the average cost of a movie to Sarita? What is the
marginal cost of an additional movie?

Consider the non-linear inverse demand function, p= -q2-q+I. Given the total cost function: TC =9q2+2q+
i. Find the marginal cost (MC) and average cost (AC) as functions of q
ii. Find the output at which average cost is minimized

Suppose the market demand function for a good is given by.
Q=-5p+1000
i. find the monopolist’s total revenue function
ii. Find maximum total revenue