Economics Answers

In the market of air travel, which of the following variables would decrease demand ceteris Paribas

a shift in production from Cds (service) towards Tvs (good)

A community in Northern Namibia produces only two goods, TVs and CDs. With the aid of properly labelled production possibilities curves illustrate each of the following (putting TVs on the vertical axis). 2.1.1 A shift in production from CDs (services) towards TVs (goods). (5) 2.1.2 An increase in the potential output of the community due to a greater availability of the factors of production.

Lonewolf Ltd is a sole manufacturer and supplier of solar panel in the country, as a result of this the CEO claimed in a recent meeting that he can set any price and sell as many unit of his product as he want at that price. Is it possible and why?

Explain using properly diagrams, why a perfectly competitive firm will earn only normal profit in the long-run

Explain using properly labelled diagrams why a perfectly competitive firm will only earn normal profit in the long run

Using well labelled diagrams, explain how the equilibrium price and equilibrium quantity of apples will change as a result of the following; 2.2.1 A change in the wages of farm workers from R150 per day to R200 per day. (10) 2.2.2 A decrease in the price of fertilizers and a concurrent increase in the demand for apple juice. (10)

Explain using properly labelled diagrams, why a perfectly competitive firm will earn only normal profit in the long-run

Given the demand function
Qd=650-5p-p2(p square) where p= 10
Determine the price elasticity of demand.

In the market for air travel, which of the following variables would decrease demand, ceteris paribus?
a) An increase in rental rates for hired cars, a substitute.
b) A rise in income of tourists.
c) A rise in the price of air travel.
d) A rise in the price of hotel accommodation, a complement.