Economics Answers

The future value of an annuity is the balance in an account before a series of payments have been made at equal time intervals.

[1] True

[2] False

We use the _____________to determine the monthly payment and the outstanding principal.

[1] Annuity

[2] Interest

[3] Future value formula

[4] present value formula

What would be the interest due at the end of year 1 if the principal debt was R5000 and the interest rate is 15%

[1] 75 000

[2] 7500

[3] 750

[4] 75, 00

Suppose the price of commodity X rises from N10 per kg to N15 per kg and the quantity demanded increases from 300 kg to 100 kg. Find the price elasticity of demand.

If the demand and supply functions in a competitive market are (5marks) Qd = 50 − 0.2P Qs = −10 + 0.3P and the rate of adjustment of price when the market is out of equilibrium is dP /dt = 0.4(Qd − Qs) derive and solve the relevant difference equation to get a function for P in terms of t given that price is 100 in time period 0. Comment on the stability of this market.

If demand became zero with a slight rise in the price , what would you call such a demand?

Assume we observe that the equilibrium price of a certain good has DECREASED significantly over the past 5 years, with virtually NO CHANGE in the equilibrium quantity. Which of the following is the most likely explanation? Over the past 5 years:

1.both supply and demand have decreased.

2.demand has increased but supply has decreased.

3.both supply and demand have increased.

4.supply has increased but demand has decreased.

The market for CDs is in equilibrium. Then an increase in the supply of CD players leads to a decrease in the price of CD players and, simultaneously, a technological innovation reduces the cost of manufacturing CDs. The equilibrium price of CDs will

Given the nature and effects that the Russia and Ukraine war had on economic development discuss using neocolonialism theory. and advice on how should policy makers respond to these shocks?

if the elasticity of demand is 1.6 and a firm increases the price of its product by 10% ,it would expect its total revenue to