Economics Answers

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. 

C=100+1/2 y^d

I=50-25r

G=100=T

Find equilibrium output assuming interest rate is 15%.

Find IS curve equation and show graphically

Find slope of IS curve.

Government has decided to use expansionary fiscal policy by increasing government spending and tax to 150?

Md=25y-80r,Ms=2400, p=2

a)       Find equilibrium output equation. And Y* when r=12%

b)     Find LM curve equation

c)      Find slope of LM curve.

d)     MS increased to 3000

3. Find equilibrium r

4. Find equilibrium y

The cost of sunflower seeds has increased. Sunflower seeds are an input when sunflowers are produced. Explain verbally how this change will affect the market for sunflowers.

The population in country C decreases, due to a lower birth rate. At the same time, there is an increase in the cost of fertilizer, which is used to grow vegetables. Explain how the market for vegetables will be affected by these changes. Clearly indicate how the equilibrium price and equilibrium quantity will be affected by these changes. Make use of a combination of diagrams and verbal explanation to explain your answer.