Economics Answers

Define elasticity of demand. As the price of good X rises from $10 to $12, the quantity demanded

of good Y rises from 110 units to 116 units. Are X and Y substitutes or complements? What is the

cross elasticity of demand?

What happens to the equilibrium position if following incidents are occurred?

i. If consumer income increases.

ii. Number of buyers in the market decreases

if Lars' Land Racers wanted a unit market share of 24.0% with no change in their Average Selling Price Per Unit, what would their Dollar Market share? Assume that the total market size in dollars and units does not change.

a)What is market failure? Why do markets fail? Why is market failure common in

developing countries? Discuss.

b) What role do “barriers to entry” play in the Structure-Conduct-Performance theory?

Explain.

c) Based on pros and cons discuss the differences between the three integration models.

d) Discuss the nature of agricultural marketing from the small-scale and commercial

farming perspective and describe advantages and disadvantages that exist in each

case. Provide four types of satisfaction that will occur through the marketing in both

cases of farming

If a higher price for good X causes a decrease in the demand for good Y, the cross elasticity value for the two goods would be?

A. negative. B. equal to zero. C. positive. D. possibly negative, positive, or zero, but there is not enough information to decide.

please provide arguments against every option.

Given the utility function U =10Q₁Q₂ and relative prices of P₁= ₦20, P₂ = ₦10 and consumer money income of ₦400. You are required to determine the units of each commodity to consume at the equilibrium point.

Suppose a nation's 2003 nominal GDP was $972 billion and the general price index was 90. To make the 2003 GDP comparable with the base year GDP, calculate the 2003 GDP.

Below is the hypothetical data on the costs of production in a perfectly competitive firm.

Output Average variable cost

1 500

2 460

3 400

4 420

5 420

6 450

7 490

8 537.5

If the cost of the firm before operation is 600;

a)     Calculate the Total Cost, Marginal Cost, Average Cost, Average Fixed Cost.

b)     Explain why Marginal Cost of the firm rises after the 4^th output.

c)     At what output level is cost efficient for the firm and why?

d)     With the aid of a diagram, explain the profit maximizing condition for a firm.

1.    Write an account of Katrina’s (a Russian – socialist country) visit to Malaysia (mixed          economy / capitalism), imagine her visiting Mid Valley or any shopping centre in KL, on  a shopping excursion. How would she describe her experience?

Based on your knowledge of command / socialist economy, describe her experience (comparing Malaysia & Russia) when shopping here.

You may use any of the criteria’s below to make your comparison:

       i.    Ownership of factors of production

      ii.    Incentives

      iii.    Scarcity / choice

      iv.    3 basic economic questions – what, how, for whom to produce 

(a)  What do we mean by a perfectly competitive market? Do you think that the example of ECG/NetCo fits this description? Is there another type of market that better characterizes the market for ECG/NetCo?

(b)  What are the types of market structures? Critically examine each of the types by highlighting the characteristics, similarities (if any) and differences (if any).