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Explain, with the use of demand and supply diagrams, the effect of the following events on the market for solar panels:
(a) The price of solar panels has fallen to below the market equilibrium price.
(b) The price of electricity for an average household has increased by 50 percent.
(c) New technology has increased the productivity of solar panel producers.
QUESTION 2
Ceteris paribus, at the same time when demand for yoga services have increased the government has introduced strict regulations on yoga providers, resulting in the decrease in the number of yoga providers. Using demand and supply analysis what will be the impact on price and quantity in the market for yoga services.
(a) The price of solar panels has fallen to below the market equilibrium price.
(b) The price of electricity for an average household has increased by 50 percent.
(c) New technology has increased the productivity of solar panel producers.
QUESTION 2
Ceteris paribus, at the same time when demand for yoga services have increased the government has introduced strict regulations on yoga providers, resulting in the decrease in the number of yoga providers. Using demand and supply analysis what will be the impact on price and quantity in the market for yoga services.
U=x2 x Y Indicate whether each of the following transformations are monotonic transformations of U.
a)10x2 x y
b)2lnX x lnY
c)x2/3 x y1/3
d) 2X + Y
a)10x2 x y
b)2lnX x lnY
c)x2/3 x y1/3
d) 2X + Y
Economics
Q) Ceteris paribus, at the same time when demand for yoga services have increased the government has introduced strict regulations on yoga providers, resulting in the decrease in the number of yoga providers. Using demand and supply analysis what will be the impact on price and quantity in the market for yoga services.
: Suppose Mr. Master deposits AED 400,000 into a one-year Certificate of Deposit at 5%
interest. The Central Bank sets the reserve ratio for the banks at 20%.
a) Illustrate how the banks create money with the help of given information.
(Show first 6 steps)
b) Calculate the total money creation in the economy with the help of formula
interest. The Central Bank sets the reserve ratio for the banks at 20%.
a) Illustrate how the banks create money with the help of given information.
(Show first 6 steps)
b) Calculate the total money creation in the economy with the help of formula
Use indifference and budget constraint diagram (one diagram for each case) illustrate and explain (suppose the two goods are neither perfect substitutes nor perfect complements):
(1) A consumer spends all his income on bread and juice. As the price of bread decreases, he now buys more of both bread and juice.
(2) A consumer spends all his income on honey and electronic games. As his income increases, he now buys more electronic games and less honey.
(3) A consumer spends all his income on books and drinks. As the prices of both books and drinks double, he now buys less of both goods.
(4) A consumer spends all his income on books and drinks. As his income is cut in half (50% of original level), he now buys less of both goods.
(1) A consumer spends all his income on bread and juice. As the price of bread decreases, he now buys more of both bread and juice.
(2) A consumer spends all his income on honey and electronic games. As his income increases, he now buys more electronic games and less honey.
(3) A consumer spends all his income on books and drinks. As the prices of both books and drinks double, he now buys less of both goods.
(4) A consumer spends all his income on books and drinks. As his income is cut in half (50% of original level), he now buys less of both goods.
Suppose the initial price of apples is $1 per lb. and the price of orange is $2 per lb. A typical consumer has income $10 and spends all his income on the two goods. The consumer buys 4 lbs of apples at the initial price levels. Later the price of apples increases to $2 per lb and the price of orange remains unchanged, and the consumer buys 3 lbs apples. Based on indifference/budget constraint knowledge, derive the demand curve for apples. Make sure you label all the prices and quantities carefully. (Hint: calculate the quantities demanded for oranges in the 2 circumstances first.)
1. An economy produces only agricultural products (x) and manufactured goods (y). A quarter of
the land in the country is arid and not suitable for agricultural products. Therefore, if half of the
arid land is not used at all:
(a) The economy could be productively efficient when the opportunity cost of x (agricultural
products) is infinite;
(b) The economy could be productively efficient when the opportunity cost of y (manufactured
goods) is zero;
(c) The economy could be productively inefficient with infinite opportunity cost for the
production of x (agricultural products);
(d) The economy could be productively inefficient with infinite opportunity cost for the
production of y (manufactured goods).
the land in the country is arid and not suitable for agricultural products. Therefore, if half of the
arid land is not used at all:
(a) The economy could be productively efficient when the opportunity cost of x (agricultural
products) is infinite;
(b) The economy could be productively efficient when the opportunity cost of y (manufactured
goods) is zero;
(c) The economy could be productively inefficient with infinite opportunity cost for the
production of x (agricultural products);
(d) The economy could be productively inefficient with infinite opportunity cost for the
production of y (manufactured goods).
Uncle Jose\'s Farm has costs and revenue as seen in the graph below. Uncle Jose knows how well you\'ve been doing in your economics course and has asked for your help in determining how to make as much profit as possible.
Jacqui decides to open her own business and earns $50,000 in accounting profit the first year. When deciding to open her own business, she turned down three separate job offers with annual salaries of $30,000, $40,000, and $45,000. What is Jacqui's economic profit from running her own business?
The outbreak of Bird Flu in 1997 resulted in the Hong Kong government ordering the culling of more than 1.5 million chickens. The culling of chickens was simultaneously accompanied by consumers reducing their demand for life chickens due to the bird flu. Using demand and supply analysis, what was the impact on price and quantity in the market for life chickens?
