Economics Answers

Nonjabulo thinks that McDonald’s hamburgers are the best – much better than Steers’ – while Anne cannot tell the difference:
a) Anne’s demand for McDonald’s hamburgers is likely to be more price elastic than Nonjabulo’s.
b) Nonjabulo’s demand for McDonald’s hamburgers is likely to be more price elastic than Anne’s.
c) Anne’s demand for all hamburgers is less price elastic than Nonjabulo’s.
d) Nonjabulo’s demand for all hamburgers is more price elastic than Anne’s

If the cross elasticity of demand between tablets and smart phones is 2,0, this implies that these goods are:
a) Luxuries.
b) Complements.
c) Necessities.
d) Substitutes.

if there is an increase in the price of red meat, a substitute in production for milk, then what will happen to the supply?

A perfect competitor found that it could produce a maximum output of 100 units each day, which it
can sell at the market price or AR of R100, but even at this rate, it would make a loss. Considering
this information, under what circumstances would it definitely make a smaller loss if it shut down
and produced nothing

When a profit-maximising firm is at its short-run optimum point …

When economic profit exists for a firm, it is very feeble because …

how can fed keep the economy from falling

Suppose that a firm has only one variable input, labor, and firm output is zero when labor is zero. When the firm hires 6 workers the firm produces 90 units of output. Fixed costs of production are $6 and the variable cost per unit of labor is $10. The marginal product of the seventh unit of labor is 4. Given this information, what is the marginal cost of production when the firm hires the 7th worker?

Briefly explain price elasticity of demand and how it is measured

2.1 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. (5)
2.2 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)