Economics Answers

c) What are the equilibrium levels of income (Yo) and interest rate (io) (2 marks)

Using the information provided,estimate the price elasticity of supply of central American robusta coffee at the end of 2013.
PES=
=15/16
=1.06 Elastic
Can you explain this more??

In your college town, real estate developers are building thousands of new student-friendly
apartments close to campus. if you want to pay the lowest rent possible, should you hope
that demand is elastic or inelastic?
a. elastic
b. inelastic

Explain availability of close substitute as a determinant of own price elasticity.

Why are we assured that when the money and product markets are in equilibrium the bonds market will also be in equilibrium?

Your prescribed text explains that the money stock (M) can be determined endogenously or exogenously. Explain which approach is used in the South Africa macroeconomy

given the function of using C = 700 = 0.75yd, T = 100, I = 200, R = 50, G = 300 X = 250 and M = 200 + 0.1y. Calculate the equilibrium income

In the banana Republic economy, autonomous consumption expenditure is $400 billion, investment is $120 billion, and government expenditure is $90 billion. The marginal propensity to consume is 0.75, and the tax rate is a flat rate of 30% of every $ of every income and autonomous net export is 10 billion. Assumed that the price is fixed in this economy.

a) what is the consumption function?
b) what is the equation of the AE curve?
c) calculate the equilibrium expenditure?
d) calculate the multiplier?
e) if the government run a policy of fiscal discipline where the government expenditure decrease to $30, what is the change in the equilibrium expenditure?

The us government is considering to increase the market interest rate.how will it affect People's present consumption and present saving?

Please attempt the following so as to assess your understanding on the application of optimization to real life economic problems.

Identify a cost or production problem and apply largrange optimisation technique to address the problem.