Economics Answers

Suppose demand for good A is given by DA = 500 - 10 Pa + 2 Pb + 0.70I where Pa is the
price of good A, Pb is the price of some other good B, and I is income. Assume that Pa is
currently $10, Pb is currently $5, and I is currently $100.
a. What is the elasticity of demand for good A with respect to the price of good A at the
current situation? Interpret the nature of elasticity of demand.

what happens to the price and quantity of a product when it is banned from being sold in certain arears

21. Which of the following scenarios is consistent with a price change for a normal good?
a. The substitution effect is +2 and the income effect is -2.
b. The substitution effect is +2 and the income effect is +1.
c. The substitution effect is -2 and the income effect is -2.
d. The substitution effect is -2 and the income effect is +1.
e. none of the above


22. Which of the following scenarios is consistent with a price change for an inferior good?
a. The substitution effect is +2 and the income effect is -2.
b. The substitution effect is +2 and the income effect is +1.
c. The substitution effect is -2 and the income effect is -2.
d. The substitution effect is -2 and the income effect is +1.
e. none of the above

In the following question(s) you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X, (2) the equilibrium price (P) of X and (3) the equilibrium quantity (Q) of X.


9. Refer to the above. An increase in income, if X is a normal good, will: A) increase D, increase P, and increase Q. B) increase D, increase P, and decrease Q. C) increase S, increase P, and increase Q. D) decrease D, increase P, and increase Q.

In economics, the short run means a time period

Select one:
a. during which new firms are prohibited from entering the industry.
b. during which the firm is unable to change its plant size.
c. that is between one and five years.
d. during which firms are not allowed to change the amount of imported resources they use.

The Teenager Company makes and sells skateboards at an average price of $70 each. During
the past year, they sold 4,000 of these skateboards. The company believes that the price
elasticity for this product is about −2.5. If it decreases the price to $63, what should be the
quantity sold? Will revenue increase? Why?

Hello I was wondering if you will be able to help me with some questions I would appreciate that so much
The questions are based on palm oil like
Why are stakeholders advocating continued harvesting palm oil
Why are stakeholders opposing continued harvesting palm oil

law of demand:
1. EJ'S restaurant wanted to increase its lunch business. The owners distributed coupons good for $1 off every lunch order, Business increased by 25 percent. It is: ____ Because:____
2. American Eagle clothing store has a successful two for the price of one sale. THe owners next tried three for the price of one sale on remaining clothes. This sale was not nearly as successful. It is:___ Because:____

Given that co = R50 million, Ī = R230 million, G = R300 million, c = ¾, T = R100 million and YF = R3 000 million the equilibrium level of output and income is ____ and in order to reach the full-employment level of income, government spending must increase by

Why can’t a perfectly competitive firm influence industry price?