Economics Answers

Question:-

Derive the equations for IS and LM curves. Specify the parameters of the model. Explain how the levels of equilibrium output and interest rate are influenced by changes in these

parameters.

In the competitive market for organic corn, market demand is QD = 340 – 2P and market supply is

QS = 100 + 4P, where P is the price per bushel, and Q is market output in thousands of bushels.

Each individual farmer faces a marginal cost function of MC = 10 + 3q, where q is the single

farmer’s output level in thousands.

a) What is the equation for the demand (which is also MR) faced by the individual farmer?

how india can achieve energy efficient future Practical application and relating concepts with real world

The following transactions of Big Brown, a sole trader, took place from 1 January to 31 December 2015.

- Started business with capital in cash K10 000

- Deposited K8,000 cash into the bank

- Paid for rentals by cheque K2500

- Bought goods and paid by cheque K400

- Paid for stationery in cash K750

- Sold goods and received cash K600

- Bought goods on credit from suppliers K575

- Paid wages by cash K325

- Sold goods on credit to customers K780

- Withdrew K500 cash for personal use

- Paid electricity by cheque K250

Required:

Open the necessary accounts and prepare a trial balance as at 31 December 20X5.

Suppose that people decide riding scooter is no longer fun, what will happen to the equilibrium price and quantity

The United States can use all its resources to produce 250 DVDs or 500 shoes. China can use all

of its resources to produce 30 DVDs or 300 shoes. The opportunity cost of producing a DVD in

the United States is

Question : Consider a market structure comprising two identical firms (A and B), each with the cost function given by

Ci = 30Qi , where Qi fori = {A, B} is output produced by each firm.

Market demand is given by

P = 210 − 1.5Q, where Q = QA + QB

(i) Find Cournot equilibrium.

(ii) What will be the outcome if the firms decide to collude? Compare it with the results

under the Cournot equilibrium.

An increase in the production of beef will lead to a decrease in the production of leater(made from cattle hides)

Record the following transactions in the Journal and post them into ledger and prepare a Trail Balance

Oct 1st : Neel started business with a capital of 80,000

3rd : Bought goods from Karl on credit 20,000

4th : Sold goods to Tarl 25,000

5th : Cash purchases 25,000

7th : Cash sales 15,000

9th : Goods retuned to Karl 2,000

10th : Bought furniture for 15,000

11th : Cash paid to Karl 12,000

12th : Goods returned by Tarl 3,000

14th : Goods taken by Neel for personal use 3,000

15th : Cash received from Tarl 12,000

16th : Took loan from Parl 30,000

17th : Salary paid 5,000

18th : Bought stationery for 1,000

19th : Amount paid to Parl on loan account 18,000

20th : Interest received 4,000

For each of the following pairs goods, which good would you expect to have more elastic demand and why? a) Required textbooks or mystery novels b) Beethoven recordings or classical music recordings in general.