Economics Answers

What role does the government play under a market economy

How were the government tax revenues and expenditure adjusted to make the the recession in US in 2007 less severe?

The absolute value of the shortrun price elasticity of demand movie tickets is .85
The absolute value of the longrun price elasticity of demand movie tickets is 3.2
The crossprice elasticity of demand for good X another product sold with respect to the price of movie tickets −.26
The income elasticity of demand movie tickets is .75
refer to elaciticity

If the theater raises movie ticket prices by 10 percent by what percentage and direction will quantity demanded for movie tickets change in short run

Explain why the shortrun price elasticity demand for movie tickets differs from longrun price elasticity demand for movie tickets

What happen total revenue from movie ticket sales in longrun if movie ticket prices increase Explain using relative percentage changes in price/quantity

Are movie tickets normal or inferior good? Explain

Given increase in the price of movie tickets in part (a), what would be impact on demand for good X Use the appropriate graph for good X

Include correctly labeled diagrams, if useful or required, in explaining your answers. Show work.

In the small country of AgroIsland the equilibrium price of wheat is $10 per bushel Wheat is produced in a competitive industry The world market price of wheat is $20 per bushel

(a) Assume that AgroIsland currently does not engage in international trade Draw a correctly labeled graph illustrate the market for wheat

The equilibrium price labeled $10

The equilibrium quantity labeled Q

The domestic producer surplus shaded completely and labeled PS

(b) On the graph show

The world price of a bushel of wheat labeled $20

The quantity of wheat supplied by domestic producers labeled QP

The domestic consumer surplus after trade shaded completely and labeled CS

(b)how does each of the following change if AgroIsland engages in international trade in the wheat market

The domestic consumer surplus

The domestic producer surplus

What happens to the equilibrium price and quanity when price of a complement increases?

What do you think is the main reason for joining and termination of membership by
countries in OPEC? (To answer this question, reference must be made on the
characteristics of Oligopoly and its demand curve.)

Uneven distribution of natural resources often leads to countries trading with one another, explain how.

To see what is going on, economists often “adjust”
the data to refl ect changes in the economy. For
instance, in the text, we discussed the adjustments
in dollar amounts made to correct for infl ation.
Another adjustment that is frequently made
is to take into account the increase in population.
What adjustments might you make in looking
at education expenditures? At Social Security
expenditures?

1. What are the difference between agricultural products and non agricultural product prices
2. Explain the nature of supply and demand for agricultural products

A firm producing a particular products is faced with a demand cost function, given as qd=150-0.25p. And the total cost function of the firm is given as tc=2q^2+50q+100. Determine the profit maximizing output of the firm. Calculate the profit of the firm