Economics Answers

The price to drive on a freeway is $0 at all times of the day. This price establishes equilibrium at 3 a.m. but is too low to establish equilibrium at 5 p.m. There is a shortage of freeway space at 5 p.m.

Graphically show and explain how carpooling may eliminate the shortage.
Graphically show and explain how building more freeways may eliminate the shortage.

Giving example justify the following characteristic of Statistics : (i) Statistics are aggregate of facts. (ii) Statistics are affected by multiplicity of causes. (iii) Statistical data are numerically expressed. (iv) Statistical data must be obtained with reasonable d

Test II – Computation of Demand, Supply, Income & Cross Elasticity: Show your solution and box your final answers. Round off to two decimal points.

1) Leeroy Jenkins is engaged in the sale of high-classed furniture. He noticed that one particular table that costs P1000 sold 500 pcs last month. Due to oil price hike of 5%, all the prices of other commodities in market also increased by 10%. Since Leeroy is a cautious businessman, he also increased the price of his table to P1500. As such, he noticed that only 200 pcs of his table were sold this month. Much to his dismay, he could only think of one thing, he wants to try out for an NBA team. Compute for demand elasticity of the product. Is it elastic, inelastic or unitary? Write it beside your demand elasticity coefficient.

1. Kylie Jenner, a beautiful model & actress, is also a businesswoman. She sells two commodities (product x and product y) that are a hit in the market. There is only one problem; she could not figure out if her products are substitutes or if they complement each other. Commodity X sold around 1000 pieces originally. Commodity X had a new sales volume of 1200 the next month. The price of X was constant. Commodity Y had an original price of P50 but was later increased to P100. Y originally sold around 900 pieces last month but since its price increased, its demand went down to 700. Airplane tickets increased by 10% and movie tickets increased around 50%. Kylie was depressed and wanted to stop being an actress to be a full-time businesswoman. Compute for cross elasticity of demand. Are the commodities substitutes or complementary? cross elasticity of demand coefficient.

Assume that a country has a growing budget deficit, carries a very large debt, is in a period of high unemployment with interest rates almost at zero, and annual inflation and GDP growth of about 2%.
What is the first action you would take as the president? Why?
What is the first action you would take as the chairperson of the Fed? Why?
Make sure you include both the positive and negative effects of your actions, and include the trade-offs or opportunity costs.

Assume that a country has a growing budget deficit, carries a very large debt, is in a period of high unemployment with interest rates almost at zero, and annual inflation and GDP growth of about 2%.
What is the first action you would take as the president? Why?
What is the first action you would take as the chairperson of the Fed? Why?

If a property is located on the boundary of two jurisdictions,where should the property tax be paid?

Assume that a country has a growing budget deficit, carries a very large debt, is in a period of high unemployment with interest rates almost at zero, and annual inflation and GDP growth of about 2%.

Suggest how fiscal and monetary policy can move those numbers to an acceptable level keeping inflation the same.

A pizza business has the cost structure described below. The firm’s fixed costs are $20 per day.

Output (pizzas per day) Total cost of output (fixed + variable)
0 $20
5 $80
10 $120
15 $150
20 $175
25 $195
30 $210
35 $230
40 $255

What are the firm’s average total costs (ATC) at an output of 10 pizzas?

Explain the economic effect of a price floor at 8$?