Economics Answers

A small town produces good quality maize. Let us consider a market for the maize produced here. The farmers in this town distribute and sell their produce to three retail stores in the nearby city: Company A, Company B and Company C.

 The market supply for maize is given as Qs = 14 000 + 17.5p.  The demand curves for maize by Companies A, B and C are respectively: Qd = 40 000 – 12.5p; Qd = 30 000 – 5p; and Qd = 20 000 – 3p.

Note: P represents the different price levels for maize. Qs is the market supply of maize by the farmers from the small town. Qd is the quantity demanded by each retail store

1.calculate the equilibrium market price levels of maize
2.Make sure the graph to illustrate the market demand and market supply of maize
3.make use of a graph to show impact of minimum price fixing above the market price for maize

A and B are partners in a firm sharing profits in the ratio of 2 : 1. C joins the firm.
A surrenders 1/4th of his share and B 1/5th of his share in favour of C. Find the new profit sharing ratio.

C=500+0.5YD
I=100
T=80
G=200
Solve the good market equilibrium

I have a question. Is circulation of money in an economy is worth for increasing the GDP or for development. If yes, then why?

Analyse the effect of increase in world output?

A firm is analysing the impact of a price increase on frozen vegetables. The price was increased from R35 to R38 per kilogramme, resulting in a decline in quantity demanded, from 1 400 to 1 350 kilogrammes per day.

2.1 What is the price elasticity of demand for frozen vegetables in this price range, based on the midpoint formula? (4)

2.2 Given that the price increase resulted in reduced sales, using the elasticity coefficient and the revenue test, explain whether you think the decision to increase the price was sound

A firm sold 2 000 product units per day in 2017. The average monthly household income in an economy increased by 25% in 2018. How many products did the company sell in 2018 if the income elasticity for the product was calculated at 0.4?

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

A small town produces good quality maize. Let us consider a market for the maize produced here. The farmers in this town distribute and sell their produce to three retail stores in the nearby city: Company A, Company B and Company C.

 The market supply for maize is given as Qs = 14 000 + 17.5p.  The demand curves for maize by Companies A, B and C are respectively: Qd = 40 000 – 12.5p; Qd = 30 000 – 5p; and Qd = 20 000 – 3p.

Note: P represents the different price levels for maize. Qs is the market supply of maize by the farmers from the small town. Qd is the quantity demanded by each retail store

A small town produces good quality maize. Let us consider a market for the maize produced here. The farmers in this town distribute and sell their produce to three retail stores in the nearby city: Company A, Company B and Company C.

• The market supply for maize is given as Qs = 14 000 + 17.5p.
• The demand curves for maize by Companies A, B and C are respectively:
Qd = 40 000 – 12.5p; Qd = 30 000 – 5p; and Qd = 20 000 – 3p.


Calculate the equilibrium market price and equilibrium quantity for maize.