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. What is law of demand? Explain why there exists a negative relationship between the price of a product and its quantity demanded? Note: discuss the three reasons why the law holds. (Income, substitution effects and law of diminishing marginal utility)
c. Jack and Jill went up the hill to a gas station that does not display the prices. Jack says, “Give me $10 worth of gas.” Jill says, “Give me 10 gallons of gas.”
What are the price elasticities of demand for gasoline of Jack and of Jill? Explain.
d. Can you explain why farmers during a depression might approve of a government program requiring that pigs be killed and buried under the ground?
e. Look at the impact of the minimum wage shown in Figure 4 -12 . Draw in the rectangles of total income with and without the minimum wage. Which is
larger? Relate the impact of the minimum wage to the price elasticity of demand for unskilled workers.
a. The world demand for crude oil is estimated to have a short-run price elasticity of 0.05. If the initial price of oil were $100 per barrel, what would be the effect on oil price and quantity of an embargo that curbed world oil supply by 5 percent? (For this problem, assume that the oil-supply curve is completely inelastic.)
b. To show that elasticities are independent of units, refer to Table 3-1. Calculate the elasticities between
each demand pair. Change the price units from dollars to pennies; change the quantity units from millions of boxes to tons, using the conversion factor of 10,000 boxes to 1 ton. Then recalculate the elasticities in the fi rst two rows. Explain why you get the same answer.
Government can finance its spending by
Which of the following items would NOT be included in the calculation of GDP?
[1] purchase of electricity by a household for home use
[2] merchandise exports by local firms
[3] purchase of a used car by Thomas for personal use
[4] purchase of new bicycles by a bicycle rental firm
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Which of the following items would NOT be included in the calculation of GDP?
[1] purchase of electricity by a household for home use
[2] merchandise exports by local firms
[3] purchase of a used car by Thomas for personal use
[4] purchase of new bicycles by a bicycle rental firm
Nthabiseng’s monthly disposable income increases from R3 000 to R3 400. As a result, her monthly savings increase from R400 to R560. This implies that her marginal propensity to consume is …
A manufacturer of salad dressing uses machines to dispense liquid ingredients into bottles that move along a filling line.the machine that dispenses salad dressing is working properly when 8 ounces are dispenses.suppose that the average amount dispensed in a particular sample of 35 bottles is 7.91 ounces with a variance of 0.03 onces squared.is there evidence that the machine production should be stopped and wait for repair? The lost production from a shutdown is potentso great that management feels that the level of significance in the analysis should be
explain two determinants of household consumption (9).
Capital budgeting can be described as the mechanism by which businesses determine the purchasing of major fixed assets such as machinery, equipment, and buildings, as well as the acquisition of other businesses, either through the purchase of equity shares or a group of assets, to conduct ongoing operations. Discuss any five of the basic techniques of capital budgeting
#340153 on Dec 2023