Economics Answers

(A) when a price ceiling is imposed in a market

1. A persistent shortage is created
2. A persistent surplus is created
3. Sellers of the product are made better off
4. Quantity supplied is greater than the quantity demanded

(B) in order for a price floor to be effective, it must be set.................the equilibrium price, while a price ceiling must be set...............the equilibrium price in order to be effective.

1. Above, below
2. Above, above
3. Below, above
4. Below, below

A shopkeeper keeps stock of a popular brand of bread. Previous experience shows the daily demand pattern for the item with associated probabilities as follows:
Daily Demand : 0 10 20 30 40 50
Probability : 0.02 0.15 0.20 0.12 0.50 0.04
Simulate the demand for next 8 days for the following choice for random numbers
49 19 73 12 39 76 89 65.

“The personal income and payroll taxes are already too high. I think business should shoulder a larger share of the tax burden.” Have you ever heard a politician make a statement like this? Does the statement reflect sound economics? Why or why not?

outline the evolution of public finance from the field of economics

What are some uncertainties for variables for profit

If other firms in an oligopolistic industry do not respond to changes in the price of a firms product the demand curve is Q=700-50P however if other firms always match the firms price the demand curve is Q'=200-10p.
a. If firms marginal cost is 8.00 what is the profit maximizing quantity and price?
b. If firms managerial cost increases to 11.50 what will be profit maximizing quantity and price

The demand for spring water is P=1000-QT and marginal cost is zero . There are two firms in the market and each firm believes that the other will respond to one unit decrease in output by increasing its output by one half unit. For example if firm 1 reduces output by one unit, firm 2 will respond by increasing its output by one half unit.
a. Compute marginal revenue equation for each firm
b. Compute reaction functions for each firm
c. What will be equilibrium price and quantity and total output for industry?

What is the opportunity cost of going to a doctor to be examined for skin cancer?

Pakistan cement industry has shown very fast progress in last few years and has
become a leading sector of the economy. At the time of inception, there were only
four cement plants in Pakistan which has now grown to over 30 units. Cement
manufacturers have also expanded their production capacity to meet higher demand
because of construction projects and CPEC. Maple Leaf Cement Factory Limited is
a reputable largest manufacturer of cement in Pakistan. The company was set up in
1956. Suppose the quantity demanded and quantity supplied functions of cement
industry in starting week of current month are:
Qd = 5000-6P
Qs= 1500+P
Where ‘P’ is the price in rupees per bag of cement and ‘Qd’ is quantity demanded of
cement in number of bags. ‘Qs’ is quantity supplied of cement in number of bags.
Requirements:
a. Calculate the market equilibrium level of price and quantity.

Why Eskom is monopoly