The following graph describes the domestic market for non-tradable input X that the Project is going to use. According to the graph the economic cost associated with the use of X by the project is the area ... Price Supply A B R E Demand (incl. the Project's demand) F Demand O G H K L Quantity OFRK O HTRUL GMTRK GMRK
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- Consider an economy that is characterized by the following equations C= 400 + 0 5 Vd I = 700 - 40001 + 0.1V G= 200 T= 200 (MP)d = 0.75Y - 75001 (M/P)' = 600 What is the equilibrium output/ income (X)?The research department of the Corn Flakes Corporation (CFC) estimated the demand of the corn flakes it sells: Qx =1.0 -2.0Px +1.5I +0.8Py -3.0Pm +1.0A Where Qx =Sales of CFC cornflakes, in millions of 10-ounce boxes per year; Px= the price of CFC cornflakes, in dollars per 10-ounce box; I= personal disposable income in millions of dollars per year; Py= price of competitive brand of cornflakes, in dollars per 10-ounce box; Pm= price of milk in dollars per quart; and A= advertising expenditures in thousands of dollars per year. Given: Px = $2, I=$4, Py= $2.50, Pm= $1, and A= $2 What is the cross-price elasticity of demand for good X as the result of a given percentage change in the price of a competitive brand Y? Is the demand for good X cross-price elastic, or inelastic? Are good X and Y substitutes, or complementary goods? How you know?Draft a graph which shows the law of supply and demand to explain to conditions as below: Surge in household disposable income.
- Explain the relationship between MPL and MC) Consider the following closed economy SImodel set upY = 18000C = 300 + 0.8(Y − 2500)I = 3500 − 400(r)G = 3000T = 2500(a) Compute the impact on r and I, if Gincreases by 500.(b) Compute the impact on r and I, if Gincreases by 500.(c) Compute the impact on r and I, if bothG and T increase by 500.Calculate the equilibrium level of income if C=R100 million + 0.8y and T = R125 million
- COMPUTE FOR MP AND AP. EXPLAIN.Solve for the MPK, assuming that the MPL in the production of smartphones is 50 per smartphone per hour and the MRTS is ¼.Suppose that Jane’s income increases from $1700 per month to $2350. At the same time, her consumption changes from $950 per month to $1300 month. What is Jane’s marginal propensity to consume? (Round your answer to two decimal places.)
- In 2018, a cold front in Barbados increased both the demand for water heaters andgasolines. The usage of gasoline was 581 tonnes, an increase from 499 tonnes in theprevious year. The Petroleum Company of Barbados advised Government officials thatdemand could outweigh supply and asked companies to increase the supply. They alsoasked major gasoline users, such as power plants, to reduce demand.i. Illustrate the effect of the cold front on the demand for gasoline using a demandcurve diagram over the two years. ii. Assuming the Petroleum Company of Barbados did not issue a directive for anincrease in supply and a decrease in demand, explain the problem that would existin the economy and how would this be corrected over time. iii. Illustrate the effect of major gasoline suppliers increasing supply as well as usersreducing their demand. iv. Discuss one factor EACH that you think influence demand and supply for waterheaters. Provide examples v. Is demand for gas is price elastic or price…In 2018, a cold front in Barbados increased both the demand for water heaters andgasolines. The usage of gasoline was 581 tonnes, an increase from 499 tonnes in theprevious year. The Petroleum Company of Barbados advised Government officials thatdemand could outweigh supply and asked companies to increase the supply. They alsoasked major gasoline users, such as power plants, to reduce demand. i. Illustrate the effect of the cold front on the demand for gasoline using a demandcurve diagram over the two years. ii. Assuming the Petroleum Company of Barbados did not issue a directive for anincrease in supply and a decrease in demand, explain the problem that would existin the economy and how would this be corrected over time.Equation for consumption is C=40/(0.8Y) where Y= yearly income = $400. The marginal propensity to consume is _______?