A2 A1 Q2: If price of good X falls a) What will be the optimal basket of good? b) How can you categorize this good? Other goods X₂ X₁ Z U₂ Z Good X
Q: An insurance company offers a "standard contract" to employees of a company with a premium of $200…
A: A fair insurance contract for a customer is one in which the premiums paid are equivalent to the…
Q: Critically analyse the macroeconomic and financial effects of climate change. How do these effects…
A: Worldwide macroeconomic and financial repercussions of climate change are being felt, albeit they…
Q: Read “YOU’RE THE ECONOMIST: Cigarette Smoking Price Elasticity of Demand”. According to the previous…
A: Elasticity of demand is a measure of how responsive the quantity demanded of a good or service is to…
Q: After widespread press reports about the dangers of contracting "mad cow disease" by consuming beef…
A: Any exogenous shock like negative news in this causes demand curve to shift left.
Q: A research center has conducted extensive research on social media usage. One finding was that 73%…
A: (a) Given information: Sample size (n) = 600 sample proportion, p = 0.73 confidence level, c = 0.95…
Q: Suppose that the Central Bank has currently set the reserve requirements in the economy to be equal…
A: The money supply is the amount of money in the hand of the public or in the bank account. When the…
Q: While game theory predicts non-cooperative behavior for a one-shot Prisoner's dilemma. By repeating…
A: The study of strategic decision-making in which the result of one person's activity depends on the…
Q: What is balance of payment explain two paragraphs?
A: Balance of Payment(BOP) is an explanation that records every one of the financial exchanges made…
Q: How can a tax cut increase investment, and what is the impact on the economy?
A: A tax is a compulsory financial charge or levy imposed by a government on individuals, businesses,…
Q: These are Macroeconomic questions a. Farmers in Country A grow $150 worth peanuts which are sold to…
A: To calculate the GDP of Country A and B, we can use the value of final goods approach and the…
Q: (Flexible Exchange Rate Regime) Use a diagram to aid in your explanations. (a) Use the DD-AA model…
A: Introduction The exchange system with a flexible exchange rate is one in which the rate of exchange…
Q: Taxes on specific types of business activity panama Grupomerica Full explain this question very…
A: A tax is a mandatory financial charge or levy that the government imposes on citizens or…
Q: Assume that utility is given by u(x, y) = x0.3y0.7 1. Derive the Walrasian demand function. Then use…
A: Utility function and budget constraint: The utility function refers to all those commodity bundles…
Q: The Digital Electronic Quotation System (DEQS) Corporation pays no cash dividends currently and is…
A: Intrinsic Value of Share: The intrinsic value of a share implies the fair value of a share relies on…
Q: Suppose a closed economy has an aggregate consumption function given by C = 100 + 0.50Yd and…
A: Aggregate demand is the sum of consumption, investment, government spending and net export. At…
Q: Answer ALL questions. Each question carries ONE (1) mark. State whether each of the following…
A: Opportunity cost is the cost of an alternative that must be forgone in order to pursue a certain…
Q: Using shifts in supply and demand curves, describe a change in the industry in which your firm…
A: While demand makes sense of the shopper side of buying choices, supply connects with the vender's…
Q: Suppose the price of a good increased from $3 to $4. In response, the consumer has decreased his…
A: Price elasticity of demand measures the responsiveness of quantity demanded to changes in price.
Q: The graph below represents the market for gift bags and is currently in equilibrium. Graph the…
A: Demand and supply are fundamental concepts in economics that describe how markets function. They…
Q: Suppose now the government passes a law that significantly increases the minimum wage. This change…
A: The natural rate of unemployment is the sum of the frictional unemployment rate and the structural…
Q: Consider a firm withd> 0, under all the assumptions we made in class. If W_F (1 + d) > W_M, then the…
A: The discrimination coefficient is a numerical measure of labor market discrimination that captures…
Q: Suppose the initial change in spending is $12 billion. The indirect effects of that change cause a…
A: Given information: The initial change in spending is $12 billion. This initial change in spending…
Q: Based on the Krugman text and your reader articles, what position do you take on the current fiscal…
A: Based on economic theory and empirical evidence, there are arguments for both stimulus and austerity…
Q: of loans would amount to
A: A new deposit of $900 billion is made in the banking system. And the reserve requirement ratio is…
Q: Solve Input demand and input supply Item1 : Good Q , L labor ,W wage ,A level of technology…
A: Labor Market Equilibrium: To find the labor market equilibrium, we need to determine the wage rate…
Q: Assume that we can estimate a project's cash flows as follows: n 0 2 4 5 Expected Flow E(An)…
A: NPV is the net current worth of cash flows that are expected to occur in the future.
Q: How does high inflation lead to a recession in the country? Explain the role of the Government and…
A: There are various ways that high inflation might trigger a recession in a nation. One of the most…
Q: Draw a well labeled graph (similar to graph 10.3 on page 283 from textbook) showing the point of…
A: The extra output that is created when one more unit of labour is employed while keeping all other…
Q: Suppose the government uses a balanced-budget policy, Önancing its expenditure by lump-sum taxes…
A: When the government supports its expenditures with lump sum taxes, it is said to be operating under…
Q: A movement along the demand curve, represented by points A and B, is shown in the diagram to the…
A: Price elasticity of demand measures the responsiveness of change in quantity demand to change in…
Q: Dahlia gives a presentation on the Industrial Revolution and focuses on its impact on air and water…
A: Dahlia examines the effects of human activities on the natural world and how these effects can have…
Q: Choose the correct answer. A well - tested economic theory is often called... 1. a hypothesis. 2. a…
A: The hypothesis is the ideas that have not been tested or have limited evidence to support them. On…
Q: Which of the following could be the price elasticity of demand for a good for which a decrease in…
A: Price elasticity of demand measures the responsiveness of quantity demanded to changes in price.
Q: Explain in detail. How the discovery of new oil reserve in a nation brings a boost in its…
A: Economic development is the steady, long-term rise in a nation's output, standard of living, and…
Q: Draw a well labeled graph (similar to graph 10.3 on page 283 from textbook) showing the point of…
A: The extra output that is created when one more unit of labour is employed while keeping all other…
Q: Use the graph to answer the question. The marginal social benefit, marginal private benefit, and…
A: When market forces prevail, then marginal private benefit=marginal private cost. ( Marginal social…
Q: The monthly demand of a company is showed below, please use the static method to forecast the…
A: Forecast demand refers to an estimate of the amount of a product or service that is expected to be…
Q: some compliance issues identified by the auditor-general of south africa and national treasury are…
A: The budget process is a critical component of financial management in municipalities in South…
Q: Assume that Rosemarie has the following utility function: U(W) = W1/2. She is selling her home and…
A: Expected utility is a concept used in decision theory to measure the satisfaction or utility that an…
Q: A two-person game in which each person has access to only two possible strategies will have at most…
A: Nash equilibrium is a concept in game theory that describes a state in which each player in a game…
Q: Harry's Pepperoni Pizza Parlor produced 10,000 large pepperoni pizzas last year that sold for $10…
A: Gross domestic product (GDP) measures the market value of final goods and services produced by a…
Q: 3. Now, Assume that Peruvian government responds by using monetary policy to stabilize output after…
A: When demand declines and unemployment increases, it is typical to anticipate a dramatic increase in…
Q: Microsoft is selling a one-of-a-kind software program for which they have no competitors. The demand…
A: Incase of monopoly , There exists a large no. of buyers but a single seller. The profit is…
Q: The game, "the battle of the sexes" (discussed in class) has pure strategy Nash Equilibria…
A: A pure strategy Nash equilibrium (PSNE) is a situation in which each player chooses a single,…
Q: The U.S. market for snowboards is currently in equilibrium at price $220. Burton finally starts…
A: Consumer surplus is the area below demand curve and above price. Equilibrium is where the demand…
Q: Given the following total-revenue and total-cost functions of a firm: TR = 4Q TC = 0.04Q³ – 0.9Q² +…
A: Profit is the difference between the total revenue and total cost. Total profit is maximum where…
Q: A small open economy has a current account of zero. A fall in its investment demand balance causes O…
A: A small open economy's current account balance of zero means that its total exports and income from…
Q: You have been tasked with developing a research report based on an economy of your choice anywhere…
A: Demand refers to the amount of a product or service that buyers are willing and able to purchase at…
Q: Apparently, the increasing popularity of scooters is also leading to an increase in scooter-related…
A: The increasing popularity of scooters is also leading to an increase in scooter-related injuries.…
Q: Answer if the following questions are true or false. The Fed's balance sheet considers assets and…
A: Quantitative easing (QE) is referred to be as a monetary policy action whereby central bank buys…
Step by step
Solved in 4 steps
- 6-2 Increasing Movie Ticket Prices To conduct an experiment, AMC increased movie ticket prices from $9.00 to $10.00 and measured the change in ticket sales. Using the data over the following month, they concluded that the increase was profitable. However, over the subsequent months, they changed their minds and discontinued the experiment. How did the timing affect their conclusion about the profitability of increasing prices?MCQZ 13 Camille is at the candy store with Grandma Mary, who offers to buy her $10 worth of candy. If lollipops are $2 each and candy bars are $3 each, what combination of candy can Camille's Grandma Mary buy her? Multiple Choice five lollipops and three candy bars two lollipops and two candy bars two lollipops and three candy bars four lollipops and one candy bars MCQZ 16 Assume that a consumer has a given budget or income of $10 and that she can buy only two goods, apples or bananas. The price of an apple is $2.00 and the price of a banana is $1.00. If the consumer decides to buy 4 apples, how many bananas can she also buy with the remainder of her budget, assuming she exhausts her income? Multiple Choice 2 bananas 10 bananas 4 bananas) It is an established fact in economics that for goods which are described as inferior goods, when incomes of consumers increase, consumers tend to reduce their consumption of such goods and rather patronize goods which would normally provide higher satisfaction .Suppose in Ghana, gari is seen as an inferior good and incomes of low income earners rise substantially as result of the introduction of a new incomes policy. If a researcher decides to undertake a study to verify the general preposition that as incomes rise, the consumption of inferior goods falls. 1.which type of economic study and what analysis is this? Justify your answer.
- Q27Suppose household annual demand for gasoline follows the equation QD = 2000 – 500P + 25I where P is the price of a gallon of gasoline and I is household income in 1000s of dollars. Suppose that P = 3 and I = 60. What quantity of gasoline will households demand at this price and income level?The daily demand for Invigorated PED shoes is estimated to be Qdx = 100−3Px + 4Py − .01M + 2Ax where Ax represents the amount of advertising spent on shoes (X), Px is the price of good X, Py is the price of good Y, and M is average income. Suppose good X sells at $25 a pair, good Y sells at $35, the company utilizes 50 units of advertising, and average consumer income is $20,000. Calculate and interpret the own price, cross-price, and income elasticities of demand.
- Cristina is excited with these averages and tells her public relations team to prepare a glossy brochure to showcase this $250 increase in household income. which of the following must be true to confidently conclude that this $250 difference in average income was caused by access to a UThere The herders who bought UThere phones would have had higher income than the herders who did not even if they had not purchased the UThere phone. The herders who bought UThere phones would have had the same income as the herders who did not even if they had not purchased the UThere phone. We don’t need to worry about Selection Bias since Nepal and Tibet are small countries with more or less similar people. The equation for Selection Bias does not provide enough information since we do not know the counterfactuals.Answer the following questionsBill O'Really of OX News observed that poultry (chicken and turkey) consumption in the US increased dramatically over the 2000 to 2006 period. This he believed was due to the fact that consumers, being more health conscious, switched from red meat to poultry, in an effort to eat healthier foods. Intrigued by these findings, Bill contacted the US Department of Agriculture for additional information. The department provided him with data that yielded two findings. First, there was a 75% decrease in the price of poultry over the period and second, there was widespread adoption of cost reducing innovations in poultry processing. Being a supposedly brilliant journalist, Bill concluded that the demand curve for poultry had shifted to the right. a. Is Bill's conclusion correct or incorrect? Explain your answer using supply and demand diagrams (best to use two diagrams in your answer). ANS:
- 3E2: use the following to complete the question.Can you answer question 12Matthew and Susan are both optimizing consumers in the markets for shirts and hats,where they pay $100 for a shirt and $50 for a hat. Matthew buys 4 shirts and 16 hats, whileSusan buys 6 shirts and 12 hats. From this information, we can infer that Matthew’smarginal rate of substitution is _____ hats per shirt, while Susan’s is _____.a. 2, 1b. 2, 2c. 4, 1d. 4, 2