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discuss how bank behaviour and the Fed’s behaviour may have caused money supply growth to be pro-cyclical before the crisis. What has changed since 2008-09?
If we were to say that two variables are positively related, this means that:
a) The relationship between the two would graph as a line sloping downward.
b) The relationship between the two would graph as a horizontal line.
c) The relationship between the two would graph as a line sloping upward.
d) The relationship between the two cannot be depicted graphically in any simple way.
a) The relationship between the two would graph as a line sloping downward.
b) The relationship between the two would graph as a horizontal line.
c) The relationship between the two would graph as a line sloping upward.
d) The relationship between the two cannot be depicted graphically in any simple way.
Each of the normal students will demand courses in the amount:
QN= 100 – 0.25 P where Q is the number of course-hours per academic year and P is the price per course-hour. Each of the workaholics, on the other hand, has a demand of:
QW= 200 – 0.5 P The school will admit 180 students from each group. (Students may choose not to enroll.) The marginal cost to the School is constant at $100 per student course-hour. Sloan’s fixed cost is $2.0 million per year. For each of the following pricing schemes, please derive the optimal price structure and the total profit, on the assumption that the School’s objective is to maximize profit from the MBA program. a. A single fixed tuition per academic year (with a zero price per course-hour), with no limit on the number of course hours. Hint: Sloan may decide to induce both types of students to enroll or just the workaholics
QN= 100 – 0.25 P where Q is the number of course-hours per academic year and P is the price per course-hour. Each of the workaholics, on the other hand, has a demand of:
QW= 200 – 0.5 P The school will admit 180 students from each group. (Students may choose not to enroll.) The marginal cost to the School is constant at $100 per student course-hour. Sloan’s fixed cost is $2.0 million per year. For each of the following pricing schemes, please derive the optimal price structure and the total profit, on the assumption that the School’s objective is to maximize profit from the MBA program. a. A single fixed tuition per academic year (with a zero price per course-hour), with no limit on the number of course hours. Hint: Sloan may decide to induce both types of students to enroll or just the workaholics
A manufacturer sells his product at (49-2x) per unit and it costs him 2 shillings per unit to manufacture. if his fixed costs are 30 shillings
a)determine the break even point in terms of cost and quantity
b) determine the level output that will maximize profits
a)determine the break even point in terms of cost and quantity
b) determine the level output that will maximize profits
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)
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 SEVEN (7) conditions necessary for a perfectly competitive market to exist.
Explain using properly labelled diagrams, why a perfectly competitive firm will earn only normal profit in the long-run.
Lonewolf Ltd is the sole manufacturer and supplier of solar 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 of his product as he wants at that price. Is this correct? Motivate your answer.
QUESTION 3 (20)
3.1 Briefly explain price elasticity of demand and how it is measured. (5)
3.2 Explain with diagrams and relevant examples, THREE (3) categories of price elasticity of demand. (9)
3.3 Explain any THREE (3) determinants of price elasticity of demand. (6)
3.1 Briefly explain price elasticity of demand and how it is measured. (5)
3.2 Explain with diagrams and relevant examples, THREE (3) categories of price elasticity of demand. (9)
3.3 Explain any THREE (3) determinants of price elasticity of demand. (6)
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)
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)
