Economics Answers

With the aid of well-labeled supply-demand diagrams, explain how the equilibrium price and quantity of notebook computers will be affected if
a) new suppliers enter the market
b) it is discovered that frequent use of computer is bad for health
c) the government requires that 25% of lessons taught in each school have to be conducted with information technology; and
d) earthquake occurs in a major notebook computer producing region

Using the multiplier model, evaluate the effects of the following scenarios on Real GDP. In all of these scenarios, the MPC is 0.8.
A) The government increases its spending on infrastructure by $100 million. B) The government increases taxes by $100 million.
C) The government reduces its spending on goods and services by $10 million. D) The government reduces social security benefits by $10 million.

the market demand and supply function for milk are: Qd= 58-30.4P and Qs = 16+ 3.2P. If a price floor of $1.75 is implemented, calculate the change in producer surplus. How many surplus units of milk are being produced? If the government purchases all the excess units at $1.75, calculate the milk expenditure by government? Does the increase in producer surplus due to the price floor exceed government spending on excess milk?

Demand in a market is given by Q=3p^-7.6 where p is the market price. What is the elasticity of demand? Include the negative sign if necessary.

If the UPM's price equation is: 120-2Q; the UPM's marginal revenue is: 120-4Q; the UPM's total cost is: 3Q^2 +5Q+132; and the UPM's marginal cost is: 6Q +5.
A. Solve for the profit-maximizing (or loss minimizing) quantity (Q*).
B. Solve for the profit-maximizing (or loss minimizing) price (P*).
C. should the uniform pricing monopolist produce Q*? Explain why using one of the four key questions and solutions
D. Does the uniform pricing monopolist make profit? Explain why using one of the four key questions and solutions
E. How much profit (or loss) does the uniform pricing monopolist make?

If the competitive market is $60, total cost= 3q^2-18q+182 & Marginal cost=6q-18.
A. Solve for the profit-maximizing (or loss minimizing) quantity (q*)
B. What is the Market equilibrium price?
C. Should the competitive firm produce q*? Explain why using one of the four key questions and solutions.
D. Does the competitive firm make a profit? Explain why using one of the four key questions and solutions.
E. How much profit (or loss) does the competitive firm make?

Given the 2019 PPF for consumption goods and capital goods shown in the left-hand graph below, consider points A and B on PPF2019. a) Which point would most likely result in a higher current (2019) standard of living, point A with C1 units of consumption goods and K1 units of capital goods, or point B with C2 units of consumption goods and K2 units of capital goods? Explain briefly. b) In the right-hand graph, illustrate a PPF for 2029 assuming that the economy is at point A in 2019; label this PPF as PPFA. Illustrate a second PPF for 2029 assuming that the economy is at point B in 2019; label this second PPF as PPFB. Does PPFA lie everywhere inside or outside PPFB? Explain.


.

Qd=200-5p Qs=40+30p tax= 5% what will be equilibrium price and quantity

Clearly describe substitution effect and income effect for a fall in price for a normal good and an inferior good

Assuming the two goods X and Y and two persons, analyze the exchange of goods between the two using the Edge worth Box framework indicating the Pareto efficient allocation