ECONOMICS.... Suppose a 4 percent increase in income results in a 2 percent decrease in the quantity demanded of a good. Calculate the income elasticity of demand for the good and determine what type of good it is.

Q: A man borrowed P10,000 from a loan firm at a simple interest of 15%. If the interest is to be…

A: The formula for Simple Interest is S.I = P x r x t where P is the amount of loan r is the interest…

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Q: The opportunity cost of a hotdog in terms of hamburgers is O the ratio of the price of a hotdog to…

A: The opportunity cost is the next best alternate that is sacrificed. The opportunity cost of the…

Q: subject to the budget constraint 5L + 10K = 75; where L is labour and K is capital. Derive the…

A: The production function shows the relationship between the output and inputs.  The equilibrium is…

Q: nswer: Price of mangoes (per kg) 80 70 60 50 40 30 Quantity Supply of mangoes per week (in Kg) 3 2.5…

A: Demand is the quantity of an item or service that consumers buy at various prices during a specific…

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A: Here, VC variable cost MC marginal cost  FC fixed cost TC total cost ATC average total cost AVC…

Q: (a) Using the data from the above figure, calculate the firm's total profit. Total profit: $ (Click…

A: Here, the given graph shows the marginal cost curve, average total cost curve, marginal revenue…

Q: What is the world development report of the world bank (1994) and what does it say about the Indian…

A: Introduction - In its 17th World Development Report released in June 1994, the World Bank emphasized…

Q: The graph shows the unregulated market for electricity. The marginal external cost of the pollution…

A: An unregulated system of monetary trade, where charges, quality controls, portions, duties, and…

Q: The following excerpt is taken from the Ministry of Finance: Statement on the economic effects and…

A: We are authorized to answer three subparts at a time, since you have not mentioned which part you…

Q: Analyze the impact of a change in demand or a change in supply or both (or it may not necessarily…

A: Demand and Supply  Demand refers to the quantities of a commodity that the consumers are ready to…

Q: 3. Draw a graph representing a hypothetical economy. Carefully label the two axes, the S+T+IM curve,…

A: saving doesn't rely upon income or production (particularly extra cash, public pay, or even total…

Q: Gomez runs a small pottery firm. He hires one helper at $12,000 per year, pays annual rent of $5,000…

A: Explicit cost is the actual monetary expense.  Implicit cost is the opportunity cost of doing an…

Q: What is an indifference curve? Also elaborate its different possibilities under the different…

A: The indifference curve is a curve that illustrates various combinations and bundles of two…

Q: This set-up is used for the following three problems. Mahmud, Katya, and Safiya are dividing an…

A: Sealed Bids have a single round of simultaneous bids in which the buyer who submits the highest bid…

Q: The following are estimates for two stocks. Firm-Specific Standard Deviation Stock A B Expected…

A: A standard deviation (symbol σ) is a proportion of how distributed the information/data is…

Q: A production function has two inputs, K and L. At the current time, at the current level of output,…

A: We are going to use marginal productivity analysis to answer this question.

Q: What are the functions of the reserve Bank of India?

A: Introduction - The important function of the reserve bank of India is to establish monetary…

Q: Data in the matrix below indicates COST expected from 3 alternatives under 4 states of nature.…

A: Expected value (EV) describes the long-run average level of a variable supported its chance…

Q: When applied to a public good, 'non-rival' means that Select one: A. Consumption of the good by one…

A: Public goods are those goods which are usually provided by the government to the people. These goods…

Q: A distribution company is considering three different alternatives to satisfy their customer's…

A: Future worth is the value of a current asset at a future date based on an assumed rate of growth…

Q: The average annual cost of damages caused by floods at Dona Rosario Village located along Butuanon…

A: Given, Estimated cost = P700,000  Initial cost = P2,500,000  Maintenance cost = P20,000  Interest =…

Q: In short-run production with two inputs where land is a fixed input labor is a variable input, once…

A: Marginal product of labor (MPL) is defined as the change in the product of labors by employing one…

Q: K New York has the highest cigarette taxes in the country. The price of an average pack of cig. and…

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Q: Expansionary monetary policy is when: None of the statements are correct. The president and congress…

A: Monetary policy refers to the policy of central bank that changes the cost and availability of…

Q: Draw labor supply and demand curves in equilibrium under perfect competition.Be sure to label the…

A: In perfect competition labour market clears through market mechanism with the help of demand and…

Q: Using the IS-LM -FX diagram, show graphically and explain the effects of a contractionary monetary…

A: The IS-LM-FX model is also known as the Mundell Fleming model. Here we consider the open economy in…

Q: This table shows the U.S. federal income tax rates from 2015. (Source: Internal Revenue Service)…

A: Introduction We have given a data of U.S federal income tax rates from 2015. Each row shows the tax…

Q: Imagine that you are the leader of Bank of Canada's economic policy advisory board. Explain why…

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A: The policy mix is the combination of the monetary and fiscal policies to make desirable changes in…

Q: which of the following questions is not a microeconomic question? oa. why is wealth unequally…

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Q: A firm is producing 1,000 units at a total cost of $5,000. If it were to increase production to…

A: The sum of the fixed and variable costs is the overall cost. The price of fixed inputs into…

Q: zero economic profits in the short run and shut down. positive economic profits in the short run.…

A: profit, in business usage, the excess of total revenue over total cost during a specific period of…

Q: The El Dorado Star is the only newspaper in El Dorado, New Mexico. Certainly, the Star competes with…

A: Since you have posted multiple questions, we will answer the first question for you. If you want any…

Q: On the following graph, shift the curve or drag the blue point along the curve, or do both, to show…

A: How much money in an economy is alluded to as the money supply. Truth be told, the physical money…

Q: Tax expenditures are: O a. expenditures made to collect taxes. b. losses in revenue due to tax…

A: Inflation has a profound affect on the economy, it reduces purchasing power of the consumer, affects…

Q: 3. The Federal Reserve's organization There are 7 members of the Federal Reserve Board of Governors.…

A: When talking about the Federal Reserve, it is the Central Bank and the highest monetary authority of…

Q: The following information is available for a country: Saving Function: S-200 0.4Y Investment…

A: In the savings-investment graph, the equilibrium occurs at such a point where the savings curve…

Q: What is the difference between economic profit and accounting profit?

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: Suppose that in the market for reserves, the federal funds rate is 2.4% and the discount rate is 8%.…

A: Discount rate is the rate at which  banks take loan  when it feels shortage of funds from the…

Q: Consider this economy. Calculate exports and also net exports for this economy

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Q: What is scarcity?

A: The term economics refers to the situation under which there remain transactions of various products…

Q: The demand for product X depends on the price of product X as well as the average household income…

A: Equilibrium Quantity and Price are those quantity and price where demand and supply is equal in the…

Q: What is the functions of central bank?

A: Central bank is the apex institution in the world of banking. It is the institution which manages…

Q: 1. What is the difference between devaluation and depreciation of a currency? 2. What are the main…

A: The term depreciation refers to an accounting method used to allocate the cost of a tangible or…

Q: Your parents want to avail a life insurance that will entitle you and your siblings P30,000 monthly.…

A: Interest earned on invested over multiple ages of time does account for the interest earned on the…

Q: Suppose Edison and Hilary are playing a game in which both must simultaneously choose the action…

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Q: What are the objectives and advantages of international monetary fund?

A: IMF:- The goal of the International Monetary Fund (IMF) is to keep the global monetary system…

Q: Identify whether each of the following examples belongs in M1 or M2. If an example belongs in both,…

A: The commodity that is accepted as a medium of exchange in the market is known as money. It is used…

Q: Please tell if the following increases or decreases AS. Give an explanation for each answer 4. Raw…

A: Aggregate supply (AS) is the total quantity of goods and services firms will produce and sell at…