the demand function for beans as: Qbd = 600 – 4Pb – 0.03M – 12Pg + 15T + 6Pe + 1.5N where Qbd is the quantity demanded of beans each month, ?? is the average price of beans (in Ghana Cedis), M is the average household income (in GH¢), ?? is the price of groundnut (in GH¢), T is a consumer taste index ranging in value from 0 to 10 (the highest rating), ?? is the price (in GH¢) consumers expect to pay next month for beans, and N is the number of buyers in the market for beans. Assume the following initial values: ??=5, ??= 40, T= 6.5, Pe= 5.25, N= 2000, Qbd = 2479 As a result of the effect of COVID-19 on the economy, the government has proposed an income cut policy. Labour unions have planned a demonstration against this policy and management of Zokia Ghana Limited is considering joining the demonstration. Explain the need to join or not to join the demonstration to your workers using the concept of income elasticity of demand.
You are the manager of Zokia Ghana Limited, a producer of beans. In Ghana, it is possible to produce
beans or groundnut using the same resources. Therefore, producers are able to sw itch from beans to groundnut production depending on market conditions. Consequently, Zokia consulted an Economist who estimated the demand function for beans as: Qbd = 600 – 4Pb – 0.03M – 12Pg + 15T + 6Pe + 1.5N
where Qbd is the quantity demanded of beans each month, ?? is the average price of beans (in
Ghana Cedis), M is the average household income (in GH¢), ?? is the price of groundnut (in GH¢), T is a consumer taste index ranging in value from 0 to 10 (the highest rating), ?? is the price (in GH¢) consumers expect to pay next month for beans, and N is the number of buyers in the market for beans. Assume the following initial values: ??=5, ??= 40, T= 6.5, Pe= 5.25, N= 2000, Qbd = 2479
As a result of the effect of COVID-19 on the economy, the government has proposed an income cut policy. Labour unions have planned a demonstration against this policy and management of Zokia Ghana Limited is considering joining the demonstration. Explain the need to join or not to join the demonstration to your workers using the concept of income
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