Economics Answers

Draw a Demond and supply curve for textiles in South Africa .illustrate on the graph how a specific import tariff will affect the price ,quantities consumed ,imported and domestically produced

Ernie Manufacturing has projected sales of $155.5 million next year. Costs are expected to be $100 million and net investment is expected to be $17.5 million. Each of these values is expected to grow at 14 percent the following year, with the growth rate declining by 2 percent per year until the growth rate reaches 6 percent where it will remain. There are 5.5 million shares of stock outstanding. Investors require a return of 13 percent and the corporate tax rate is 40 percent. What is your estimate of the current stock price?

Research has found that an increase in the price of beer would reduce the amount of marijuana consumed. Is cross elasticity of demand between the two products positive or negative? Are these products substitutes or complements? What might be the logic behind this relationship?

with regards to the coal shortages and municipal debts, what forms of interventions do you think eskom can put in place in order to cover up for all the debts and continue operating . Incorporate relevant graphs in your answer.

Which market segment ____ they usually ____ ?

If the demand law is p = 85 - 4x– x2. what will be the consumer's surplus if : (i) xo =5 and (ii) po = 64

1. Government decides to spend $30 billion on defense and $40 billion education. Plot this combination on the PPC. a. Describe the point you have drawn on the graph. b. Is this a desirable combination of the two goods for the US to chose? Why or Why not?

m1 definition

14. Within the open-economy version of the Keynesian model, including taxes (see question 13), suppose there is an autonomous increase in imports of 20 units [ u in equation (5.25) rises by 20]. To counteract the effects of this contraction in domestic aggregate demand, assume that the government cuts taxes by 20 units. Will equilibrium income rise or fall? By how much? Explain.

13. Suppose that within the open-economy version of the Keynesian model in Section 5. 7, we now include taxes. Disposable income (YD = Y - T) therefore replaces GDP ( Y) in the consumption function (5.24). Compute the expression for equilibrium income for this version of the open-economy model. Compute an expression for the tax multiplier (Y>T) in the model.