Economics Answers

Determine the effect upon equilibrium price and quantity sold if the following changes occur in a particular market:

1. Ceteris Paribus, when the demand for Internet service have increased the government has introduced strict regulations on internet providers, resulting in the decrease in the number of Internet providers, Using demand and supply analysis what will be the impact on price and quantity in the market for Internet services. (Hint : There are 2 scenarios working at the same time)
2. The outbreak of Bird flu in 1997 resulted in the Hong Kong government ordering the culling of more than 1.5millions chickens. The culling of chickens was stimultaneously 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? (Hint : There are 2 scenarios working at the same time)

Your client is a parent who lent $40,000 to her son to provide a
short-term housing loan. The agreement is that the son will repay
$50,000 at the end of five years.
Reconsider this question in light of the following facts. The loan was
made to the son without any formal agreement and without any
security provided for the sum lent. In addition, the client (the
mother) has informed you that she told her son that he need not
pay interest. However, the son repaid the full amount after two
years and included in his payment an additional amount which was
equal to 5% pa on the amount borrowed. Only one cheque was
presented for the total amount.
Requirement:
Discuss the effect on the assessable income of the parent

A dental office is in the process of changing their cost system. Currently use a single direct cost pool (professional labour) and a single indirect cost pool (staff support). Direct categories in new system include:
1. Professional partner labour. Avg compensation of 2 partners is $100,000 each, and each has 2000 hours of budgeted time
2. Dental assistant labour. Avg compensation of 4 assistants is $22,500 each, and each has 2000 hours budgeted time
3. Office staff. Avg compensation of 2 staff members is $15,000 each, and each has 2000 hours budgeted time.

Indirect category in new system includes professional liability insurance. Budgeted indirect amount is $200,000, and allocation base is budgeted professional hours. Dentist and dental assistant are considered professional labour hours

What is budgeted direct cost rate per hour for professional partner labour?

What is the budgeted indirect cost allocation rate per unit of the allocation base for the professional liability insurance?

In the rural farming town of York Springs, Smith's was the only grocery store and Lehman's was the only animal feed mill. How would you describe these businesses?

3. Assume that the short-run cost and demand data given in the table below confront a monopolistic competitor selling a given product and engaged in a given amount of product promotion. Compute the marginal cost and marginal revenue of each unit of output and enter these figures in the table.

Output Total cost Marginal cost Quantity demanded
Price Marginal revenue
0 $ 75 0 $180
1 120 45 1 165 $_____
2 135 15 2 150 _____
3 165 30 3 135 _____
4 210 45 4 120 _____
5 270 60 5 105 _____
6 345 75 6 90 _____
7 435 90 7 75 _____
8 540 105 8 60 _____
9 660 120 9 45 _____
10 795 135 10 30 _____

(a) At what output level and at what price will the firm produce in the short run? What will be the total profit?



(b) What will happen to demand, price, and profit in the long run?

Karen runs a print shop that makes posters for large companies. It is a very competitive business. The market price is currently $1 per poster. She has fixed costs of $100. Her variable costs are $1,500 for the first thousand posters, $1,200 for the second thousand, and then $800 for each additional thousand posters.

The AD curve describes a negative relationship between Y and P: This is because
(a) A higher P increases NX
(b) A higher P diminishes I
(c) A higher P increases G
(d) A higher P diminishes C

The U.S. and Canada are major trading partners. If GDP growth in the U.S. was smaller than GDP growth in Canada we should expect NX to
(a) Stay the same, since they are only driven by the exchange rate
(b) Increase since exports will grow more than imports
(c) Decrease since exports will grow less than imports
(d) Become equal to zero

hi i'm am trying to answer these two questions
1. A consumer splits their income equally between two goods. If the price of one good increases by 10% and their income increases by 5%, show that the consumer’s optimal consumption bundle will change despite them being able to afford their original bundle.

2. When estimating a demand function, explain why fitting a line of best fit through observed price and quantity combinations over time is not likely to yield good estimates.

however i cant seem to understand how to draw the graphs and explain them. so i will like to get the graphs for the first question with explainations which is 2 equilibrium graphs and the goodsX AND Y have to be normal and substitutes showing the old and new position of the graph after the income increase and price increase and the second question a basic demand curve but as a scatter graph. thanks