Economics Answers

when the price of a jar of jelly decreased from $4 to $2, suppliers of jelly decreased production from 250,000 jars to 150,000 jars. What is the price elasticity of supply in this case? What is the interpretation of the estimated elasticity?

when the price of product A decreased from $2 to $1, the consumer bought 28 units of product B instead of 20. What is the consumer's cross-price elasticity of demand for these two products? What does the calculated elasticity imply about the relationship between product A and product B for this consumer?

when a flower shop raised the price of a floral arrangement from $20 to $28, the number of the arrangements sold decreased from 30 Units a week to 20 Units a week. What is the price elasticity of demand for the flowers in this case? How did the shop's total revenue change as a result of this?

Problems with tight fiscal policy

Problems with the Inflation Targeting System

The short-run total cost function of a firm that employs labour (L) and fixed capital is given by c = vKo + wq^1/B × Ko^ -a/B

Where w is the cost of the labour and v is the cost of capital

(I) Derived the marginal cost of the firm

ii. Assuming that the firm is a price taking one that sells its output at p per unit, derive the short-run supply function of the firm

iii. If there are 200 firms in the industry with similar cost conditions, compute the total market supply.

Assume that Lakamuun joint is a monopolist that produces plates of TZ at konongo has the following average cost functions, AC= 100/q + 6 + 0.5q. If the demand function is given by: q= 24 - 1/4p.

(i)Set up the profit maximizing problem of the firm

ii. Compute the output-price combination that maximizes the profit of the firm

iii. What is the maximum profit

iv. Explain extensively if the firm should or should not continue product in the short run.

The short-run total cost function of a firm that employs labour (L) and fixed capital is given by c = vKo + wq^1/B × Ko^ -a/B Where w is the cost of the labour and v is the cost of capital (I) Derived the marginal cost of the firm ii. Assuming that the firm is a price taking one that sells its output at p per unit, derive the short-run supply function of the firm iii. If there are 200 firms in the industry with similar cost conditions, compute the total market supply.

c. Jimmy’s landlady complains about all the visitors coming into the building and tells Jimmy to stop selling peeps; Jimmy finds out, though, that if he gives her $0.20 per peep she’ll stop complaining. What effect does this bribe have on Jimmy’s marginal cost per peep? What is the new profit-maximizing quantity of peeps? What impact does this bribe have on Jimmy’s total profit?
Price of Peep 1.20, 1.00 ,0.90, 0.80 ,0.70 ,0.60, 0.50, 0.40, 0.30, 0.20, 0.10
Quantity Demanded 0 100 150 200 250 300 350 400 450 500 550

How monopoly markets end with Introduction of competition ?