Economics Answers

The following table shows the daily supply and demand for chicken burgers at a sporting event:

Price (RM) Quantity demand (units) Quantity supply (units)

4.00 110 420

3.50 160 380

3.00 240 240

2.50 320 160

2.00 410 96

a) What is the equilibrium price of chicken burgers? Discuss your reason.

b) If the organizer of this sporting event decide to set the price at RM4.00, how many chicken burgers should be sold? Write your answer.

c) One of the burger stall in this sporting event is offering free fries for every 3 chicken burgers purchased but customers. Describe how does this offer may affect customers demand?

The following table shows the daily supply and demand for chicken burgers at a sporting event: Price (RM) Quantity demand (units) Quantity supply (units) 4.00 110 420 3.50 160 380 3.00 240 240 2.50 320 160 2.00 410 96 a) What is the equilibrium price of chicken burgers? Discuss your reason. b) If the organizer of this sporting event decide to set the price at RM4.00, how many chicken burgers should be sold? Write your answer. c) One of the burger stall in this sporting event is offering free fries for every 3 chicken burgers purchased but customers. Describe how does this offer may affect customers demand?

1.     Given utility function U(x,y) = X^1/4Y^3/4, Where price of X=8Br and Price of Y = 2 Br and income of the consumer is 480 Br;

A.    Compute the utility maximizing level of X and Y

B.    Calculate the marginal rate of substitution of X to Y at equilibrium and interpret the result

C.    Compute the total utility at equilibrium

Explain how the inadequate aggregate demand has affected the output of pakistan during lockdown period?

a The values of consumer price index (CPI) for 2005 and 2018 are 78.8 and 272.6 respectively while the average annual income of poultry farmer is given as N216,000 and N360,000 accordingly. Comment on the welfare of the poultry farmer using the purchasing power of the income received between, the two years under consideration.

 Use a graph to explain the effect of an imposition by the government of a maximum price in the face mask market.

How will each of the following changes in demand and/or supply affect equilibrium price and

equilibrium quantity in a competitive market; that is do price and quantity rise, fall,

remain unchanged, or are the answers indeterminate because they depend on the

magnitudes of the shifts? Use supply and demand diagrams to verify your answers.

State (a) a positive economic statement of your choice, and then (b) a normative economic statement relating to your first statement.

Table – 1 shows the fixed cost and variable cost against level of output produced:

Table - 1

Quantity (Units) Fixed Cost (Rs.) Variable Cost (Rs.)

0 100 0

1 100 5

2 100 7

3 100 10

4 100 13

5 100 18

6 100 26

7 100 35

Find Average Fixed Cost, Average Variable Cost, Total Cost, Average Total Cost, and Marginal Cost for level of output. Draw the diagram for the same.

A firm demand function for its output is p=400-0.5q. To maximize sales revenue,what price should be charged