Consider two goods, X and Y. The price of product X increases from R6 to R8 per unit. As a result, the quantity demanded of product Y decreases from 200 to 190 units. Q: Give at least two real-world examples of goods like X and Y.
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Consider two goods, X and Y. The
result, the quantity demanded of product Y decreases from 200 to 190 units.
Q: Give at least two real-world examples of goods like X and Y.
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- If the absolute price of good X is $10 and the absolute priceof good Y is $14, then what is (a) the relative price of goodX in terms of good Y and (b) the relative price of good Y interms of good X?Question 21Based on the given PPF for a country, which of the following is an example of a point that is unattainable? 6 units of good X and 30 units of good Y. 0 units of good X and 30 units of good Y. 2 units of good X and 18 units of good Y. 6 units of good X and 18 units of good Y. Question 23The "law of demand" states that: Other thing remaining the same, the higher the price of a good, the smaller is the quantity demanded. the higher consumers' incomes, the greater is the demand. the higher the price of a good, the higher is the quantity demanded. the higher the price of a good, the lower is the demand for this good. Question 24The price elasticity of demand for oranges ___ change if the units of the quantity were changed from pounds to kilograms and ___ change if the units of the price were changed from dollars to cents. D) would not; would not C) would not; would A) would; would B) would; would not Question 25 Given this market for roses, what are the equilibrium price…At $3, consumers A, B, C, and D demand 10 units, 12 units, 14 units, and 8 units of commodity A, respectively. Calculate the market demand for commodity A at $3, assuming that A, B, C, and D are the only four consumers of this product.
- At a unit price of $340, the quantity demanded of a certain commodity is 80 pounds. If the unit price increases to $560, the quantity demanded decreases by 22 pounds. Find the demand equation (assuming it is linear) where p is the unit price and x is the quantity demanded for this commodity in pounds. p= At what price are no consumers willing to buy this commodity? According to the above model, how many pounds of this commodity would consumers take if it was free?Suppose countries A and B produce and consume (assuming convex preferences) apples and bananas using only labour. Unit labour cost for apples in country A are 1 and 2 in country B. Unit labour cost for bananas are 2 in country A and 5 in country B. The labour force is the same in both countries, and given by 100 in each country. Which three of the following statements are true? A Country B has a comparative advantage in producing bananas. B Allowing for international trade, the production of 50 apples and 50 bananas can occur in a global market equilibrium feasible, but not in market equilibria under autarky. C Each country has an absolute advantage. D Allowing for international trade, the production of 50 apples and 50 bananas is feasible, but not under autarky. E Under autarky, the relative price for apples (price for apples/price for banans) equals 0.5 in country A and 0.4 in country B. F Country A will produce bananas, with or…What situation do we have in the following allocations, suppose that we can make a total of 100 goods? Surplus or Shortage 1. Minimum Wage Laws 2. Rent Control Laws 3. Salary caps 4. Minimum Tobacco Prices 5. Price Gauging Laws
- How the equilibrium relative commodity prices can be set with trade according to the equilibrium analysis? Explain the attached picture.What will happens to equilibrium price P" and equilibrium quantity Q* if a) The price of cocoa falls b) People became more health conscious and consume less calories. c) Both the price of cacao falls and people became more health conscious and consume fewer calories?Consider each of the following goods and services. For each, identify whether the law of one price will hold, and state whether the relative price is greater than, less than, or equal to 1. Explain your answer in terms of the assumptions we make when using the law of one price. a. Wheat traded freely in the United States and Canada. b. Sugar traded in the United States and Mexico; the U.S. government imposes a quota on sugar imports into the United States. c. Starbucks grande dark roast coffee sold in the United States and Japan. d. Haircuts in the United States and the United Kingdom.
- “Both the import demand curve and export supply curve of a good are functions of domestic price of the good.” Explain the above statement with the help of graphs.England and Scotland both produce scones and sweaters. Suppose that an English worker can produce 30 scones per hour or 2 sweater per hour. Suppose that a Scottish worker can produce 40 scones per hour or 4 sweaters per hour. Who will produce sweaters? Each week you purchase 4 units of good A, 2 units of good B, and 3 units of good C. In week 1 the prices of the three goods (in A, B, C order) were ($2, $3, $4). In week 2 the prices of the three goods were ($2.05, $2.90, $4.20). The cost of buying the basket of goods in week 1 was $ . The cost of buying the basket of goods in week 2 was $ . The percentage change in the cost of the basket of goods was %. Round to two decimal places.Coffee and sugar are complements. If a poor sugar harvest leads to an increase in the price of sugar, there will also be?
