Economics Answers

Q20. Genovia has experienced exceptional growth in recent years. Its GDP per capita has increased from around $30,000 to $50,000 in last 5 years. Over the period quantity demanded of personal cars has increased from 450,000 units per year to 600,000 units. Quantity demanded of public transport, however, has declined from 10,000 buses to 7,000 buses. Calculate income elasticity of demand and tell which product is a normal good and which one is inferior.

Bakery is looking into a new type of bag tie. According to a competitive analysis of Juan & Juana bread’s compared to those of the competition, the new bag ties would dramatically increase the shelf life of the bread. Juan & Juana bakery currently sells all the bread the company can make, with a gross margin of Php 15,000 a week. The new tie would cost Php 2.00 more than the old one, but the longer shelf life would create incremental value to the customer. Assume that the new tie would require a machine that would add Php 4,000 per week to the company's fixed costs. How much more could Juan & Juana bakery charge per bag in order to make the same gross margin as before?

Given inflationary expectations, explain and show why a reduction in the growth rate of money will lead to an inflationaty recession

the core elements of growth employment and redistribution (GEAR) streategy of the South African government in 1996 ,under the leadership of then finance minister Trevor Manuel were amongst other things , bugdet reform to stregnthen the redistributive thrust of expenditure ,monetary policy to prevent a resurgence of inflation ,a reduction in tariffs to contain input prices and facilitate industrial restructuring ,compensatation partially for exchange rate depreciation. identify and define the macroeconomic variables that can be used to measure whether the strategy eas successful or not

Compare and contrast between convenotional and unconventional Monetary policy

Compare and contrast between convenotional and unconventional Monetary policy

The cost of attending hope university for one year is $60000 for tuition, $20000 for room accomodatio,$15000 for meal and $5000 for book andbsupplies. The student could also have earned $150000 by getting a job instead of going to a university and 10% interest on expenses he or she incured at yhe begining of the year. You are required to calculate the.Explicit cost,implicit cost and total economy cost of attending the unversity.

What's the difference between Common-Pool Resources and Common Good?

A coffee shop is evaluating the effect of cutting the price of premium coffee from R40 to R38 a cup. Current sales are 3 800 cups per year. The firm believes the price increase will result in selling 200 additional cups. It also expects increased sales of chocolate cake, as a result of the coffee promotion - from 200 to 220 cakes per year.

2.4.1 What is the arc cross elasticity of demand for cakes with respect to coffee? 2.4.2 Is the firm’s expectation of selling more chocolate cakes justified? Explain.

1.2 Identify and define the macroeconomic variables that can be used to measure whether the strategy was successful or not.
1.3 With each tool in 1.2, provide a detailed explanation on how it can be measured.