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The price of coffee increase from rs 50 per kg to rs 70 per kg and as a result the demands for tea increased from 5 kg to 10 kg what is cross elasticity of demand of tea for coffee? What is the relationship between tea and coffee
If malaysia were to stop trading goods and services with other countries, which malaysia industries would be likely to see their sales decline the most? Briefly explain.
If malaysia were to stop trading goods and services with other countries, which malaysia industries would be likely to see their sales decline the most? Briefly explain.
How is the equity value of a business calculated considering only the accounts in the owner's equity section of the trial balance?
A company has issued 1200 equity shares of Rs.10each to the public and called the amount of thereon as under
With application Rs.2.50 per share
(Including premium of Rs 2)
On allotment of Rs 4.50per share
On final call Rs 5Per share
Mr Raj pawar has purchased 130 shares He failed to pay on final call and therefore his shares were forfeited these forfeited share were re issued to Mr.Ravindra Raut at an agreed price of Rs.10.50per share
Prepare and pass the necessary Journal entries
On the 3 December 2021, the new dawn government and IMF mission to Zambia reached a staff level agreement on a program under the IMF's extended credit facility that envisages provision of financial support of $1.4bn over the next three {3} years
Taking into account the anticipated IMF conditionalities what implications will such an agreement have on the general economic outlook of Zambia?
To what extent do you approve or disapprove such an agreement? [25 marks]
The Pristine River has two polluting firms on its banks. European Industrial and Creative Chemicals each dump 100 tonnes of effluent into the river each year. The cost of reducing effluent emissions per tonne equals €300 for European Industrial and €200 for Creative. The government wants to reduce overall pollution from 200 tonnes to 40 tonnes per year. a. If the government knew the cost of reduction for each firm, what reductions would it impose to reach its overall goal? What would be the cost to each firm and the total cost to the firms together? b. In a more typical situation, the government would not know the cost of pollution reduction at each firm. If the government decided to reach its overall goal by imposing uniform reductions on the firms, calculate the reduction made by each firm, the cost to each firm and the total cost to the firms together.
Mick loves playing rock music at high volume. Luciano loves opera and hates rock music. Unfortunately, they are next-door neighbors in an apartment building with paper-thin walls. a. What is the externality here? b. What command-and-control policy might the landlord impose? Could such a policy lead to an inefficient outcome? Could such a policy lead to an inefficient outcome? c. Suppose the landlord lets the tenants do whatever they want. According to the Coase theorem, how might Mick and Luciano reach an efficient outcome on their own? What might prevent them from reaching an efficient outcome?
Consider the market for fire extinguishers. a. Why might fire extinguishers exhibit positive externalities? b. Draw a graph of the market for fire extinguishers, labelling the demand curve, the social value curve, supply curve and the social cost curve. c. Indicate the market equilibrium level of output and the efficient level of output. Give an intuitive explanation for why these quantities differ. d. If the external benefit is €20 per extinguisher, describe a government policy that would result in the efficient outcome.
The world price of wine is below the price that would prevail in France in the absence of trade. a. Assuming that French imports of wine are a small part of total world wine production, draw a graph for the French market for wine under free trade. Identify consumer surplus, producer surplus and total surplus in an appropriate table. b. Now suppose that an outbreak of phyloxera (a sap sucking insect which damages grape vines) in California and South America destroys much of the grape harvest there. What effect does this shock have on the world price of wine? Using your graph and table from part (a), show the effect on consumer surplus, producer surplus and total surplus in France. Who are the winners and losers? Is France better or worse off?
