Economics Answers

Learning demand curve question

Assume an economy in recession but close to full potential. The economy can be
stimulated by using either fiscal policy or monetary policy. Which policy would
be more effective? Be sure to provide relevant economic explanations.

Lonewolf Ltd is the sole manufacturer and supplier of a sonar panels in the country. As a result of this the CEO claimed in a recent meeting that he can set any price he wishes and sell as many units if his products as he wants at that price. Is this correct?

How can a monopolist become more profitable by means of price discrimination?

If there is an increase in the price of red meat, a substitute in production for milk, then

Suppose there is only one supplier in the market for product X. The marginal cost of
producing product X is constant at $200 per unit and there is no fixed cost. The market
demand for product X is described by the following schedule:
Price Quantity
$800 5
700 6
600 7
500 8
400 9
300 10
200 11
Determine the profit-maximizing output quantity and the price of product X. Explain your
answer

i need proper answer please

Consider a closed economy to which the Keynesian-cross analysis applies. Consumption is given by the equation C = 200 + 0.75(Y – T), where Y represents income and T represents taxes. Planned investment is 300, as are government spending and taxes.
a. What is the planned expenditure function? What is equilibrium level of income?
b. If Y is 1,500, what are planned aggregate expenditures? What is inventory accumulation or
deacumulation? Should equilibrium Y be higher or lower than 1,500?(equilibrium; hint; planned expenditure=Y, and inventory =Y-planned expenditure)
c. What are equilibrium consumption, private saving, public saving, and national saving?hint:private saving=Y-C-T
public saving=T-G
equilibrium saving=Y-C-T

d. How much does equilibrium income decrease when G is reduced to 200?
What is the multiplier for government spending?

8. There are several motives for holding assets in the form of money. What are they? Provide an example of each.

Given the utility function: U=(X1^1/2 X2^1/2)

a) calculate marginal rate of substitution for X1 and X2

b) calcualte the MRS for the indifference curve that passes through (800, 1200)

c) estimate the increase in X2 required to maintain current utility when X1 falls by 14 units. Evaluate the condition to show that the points lie on the same indifference curve.

Using a well labeled diagram, explain how the equilibrium price and equilibrium quantity of apples will change as a result of the following:
2.1.1.A change in the wages of farm workers from R150 per day to R200 per day
2.1.2.A decrease in the price of fertilizers and a good concurrent increase in the demand for apple juice.