Q: Formulate a deeper understanding of comparative advantage including the impact of government…
A: Comparative advantage is the capacity of an economy to produce a particular item or service at a…
Q: 2. Firm A makes and sells motor cycles. The total cost of each cycle is the sum of the costs of…
A: The information which has been provided is as follows:- Ce = 250,000 + 1,000Q + 5Q² Cost of frames…
Q: What cause inflation in economic?
A: Inflation is known as a persistent increase in the price of all the final goods and services over a…
Q: If you choose two people at random, what is the probability that both have the same blood type?
A: Probability of an event E is given as : P(E) = (number of elements in the event set / number of…
Q: The following graph shows the labor market for research assistants in the fictional country of…
A: Tax A tax is an expense levied by the government on taxpayers. Taxation generates the government's…
Q: Explain the inflation of the midterm in United States
A: Inflation is the increase in the general price level of goods and services in a region. Inflation…
Q: The figure below displays 6 different bundles of Good #1 and Good #2. Bundles A, B, C, D, and E are…
A: We have initial prices p1=p2=1 and the consumer income =y=$20 and then price of good-1 increased to…
Q: In building their plant, the officers of the International Leather Company had the choice…
A: The present worth or PW method is quite famous in industry because all future costs and revenues are…
Q: There are a variety of taxes that a person pays when buying an airline ticket. One tax is called the…
A: Passengers no doubt pay an array of taxes and as mentioned one such is the LUST taxes. When…
Q: Given the given cost function C(x) = 2200+ 270x + 1.4x² and the demand function p(x) = 810. Find the…
A: Given information: C = 2200 + 270x + 1.4x2 -----------> cost function P= 810 Where 'x' is the…
Q: Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing her graduation…
A: Given Information: Value of Investment = $50,000 Time = 5 years Rate of Interest = 6% We have to…
Q: a. Suppose that the central bank wants to set policy rate (or real rate) at 4%. If expected…
A: Nominal interest rate includes the effect of inflation . Nominal interest rate can be found by…
Q: Let Qd stand for the quantity demanded equation, Qs stand for the quantity supplied equation, and P…
A: Here, demand function is given as: Qd=25-2P And, supply function is given as: Qs=15+3P To find: the…
Q: the quantity of concert tickets sold decreases by 10 percent when the price increases by 5 percent,…
A: elasticity refers to a proportion of the responsiveness of a variable as per another variable's…
Q: Sankar owns a pet furniture business but he wants to grow his business and increase sales and…
A: Business: An organization or entrepreneurial entity engaged in commercial, industrial, or…
Q: Use the amortization table below to find the monthly mortgage payment for a $196,000 loan at 6.25%…
A: Mortgage installments includes the principal and interest payment. It is usually a a fixed payment…
Q: What are the three economic consequences of an asset price crash and institutional problems during a…
A: A financial crisis is an economic phase that witnesses a sharp fall in the value of asset prices and…
Q: What is mercantilism? benefits and drawbacks of mercantilism? Africans. What would the Sp, Fr and Br…
A: As per Bartleby Guidelines, we have solved the first 3 sub-parts only. If you want us to solve the…
Q: 3. The Binkle Binder Corporation sells 3-ring binders in a perfectly competitive market at a price…
A: No, firm should exit the market
Q: part E ) The book value at end of 2017 based on ADD depreciations is $ ( round to the nearest…
A: Solution of Part E- Alternative Depreciation System is the system that have a method of calculating…
Q: Imagine the NZ Government is interested in the effect of abolishing university fees on the number of…
A: Policy: A policy is a set of ideas or plans that are used to make decisions, usually in politics,…
Q: The function P(x) 1.25x² + 775x - 7000 gives the profit when x units of a certain product are sold.…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Consider the following econometric model birthweight = Bo+B₁smoking+u where birthweight is a baby's…
A: Economic data is used to build econometric models, which are then analyzed using statistical…
Q: A consumer’s utility only depends on the consumption of goods A and B according to the following…
A: Budget constraint: given the price of 2 goods and consumer’s income. The budget constraint shows…
Q: 4. Two firms face the following payoff matrix, where each is choosing whether to charge a low or…
A: Pure strategy Nash Equilibrium: Nash equilibrium with 2 players is the strategy profile where both…
Q: On the following graph, show the effect of a contractionary OMO on the market for loanable funds. ?…
A: Supply and demand are two important factors governing the buying and selling of goods. They allude…
Q: Which of the following is a characteristic of a monopoly? Responds to changes in the market price.…
A: Meaning of Market: The term market refers to the situation under which the producers or the…
Q: When the prices of goods x and y were €2 per unit of either good, a consumer spent all his monetary…
A: In economics and particularly in consumer choice theory, the substitution effect is one component of…
Q: Consider a market where the price of elasticity of the demand for streaming services is -0.6, the…
A: Income elasticity of demand: Income elasticity of demand for a good refers to the percentage change…
Q: (a) Construct an appropriate spreadsheet model for calculating the profit/loss at a given…
A: Total cost is Fixed cost + Total variable cost To find the profit or loss we need to check the total…
Q: Suppose the Sunglasses Hut Company has a profit function given by P(q) - 0.01q² +5q - 40, = where q…
A: Profit is measured as the difference between total revenue and total cost. Profit= total revenue -…
Q: How do these economic indicators are affected by the government's fiscal policy, monetary and…
A: The use of government spending and taxation to influence the economy is known as fiscal policy.…
Q: a.What was the Harvester Judgement? What was it about? b.What created the circumstances that led to…
A: a. The Harvester Judgement was a decision made by the High Court of Australia in 1912. The case was…
Q: Fill in the following table with the quantity sold, the price buyers pay, and the price sellers…
A: An elastic demand is one in which the change in quantity demanded because of a change in price is…
Q: 6. In Carfree Town the citizens can travel by bicycle or skateboard. Aluminium is an input to…
A: Substitutes are those goods which satisfy the same type of want and can be used in place of one…
Q: The table below shows market share data for different firms producing desks. Market Share in % 15 18…
A: HHI is the sum of market share squared. When two companies merge , then the market share of both…
Q: wages, T F 9. Some of the policies that authorities took to combat the Great Depression actually…
A: Economics is broadly divided into microeconomics and macroeconomics. Microeconomics deals with…
Q: Use the Mortensen‐Pissarides model to explain the consequences of an increase in the separation rate…
A: Job separation rate in reality shows economic shifts. The unemployment rate gets affected by this…
Q: The demand for a given good will decrease when the price of its substitute and the demand for a…
A: Definition of the substitute goods: Two goods x and y are said to be substitute goods if the demand…
Q: $2,140 Evan's Hat Store sells hats in a perfectly competitive market with a downward sloping demand…
A:
Q: 60 55 35 20 14 10 MC 20 25 MR ATC AVC Q
A: In case of Monopoly there is a single seller who controls the entire market. The firm is a Price…
Q: Give examples of the factors that shift the Aggregate Demand Curve.
A: Aggregate demand is the sum of Consumption, Investment , government spending. So, AD = C + I + G.…
Q: eview alternatives and assess the viability for increased use of energy in developed and developing…
A: The growing need for energy for its core and allied services. The continuous use of traditional…
Q: Use the table below to answer the following questions: Quantity Demand (Price) Marginal Revenue…
A: In perfect price discrimination, Firm will charge the price equal to consumer's willingness to pay.…
Q: High Price Low Price Firm A High Price A = $250 B = $250 A = $200 B = $325 Low Price A = $325 B =…
A: The payoff matrix is table that represents the outcomes of game. The Dominant strategy is the best…
Q: For number 1 and 2 assume an individuals Utility function is given by: 1/2 U(q1, q2) = q₁ q₂ 1.…
A: Given Consumer utility function: U(q1,q2)=q10.5q2 ......(1) A utility function is a…
Q: a) what is optimal price b) What is optimal profit
A: Optimal price / quantity and profit for a firm: A firm always try to maximize its profits given…
Q: Suppose both a monopolist and a perfectly competitive firm are producing in their respective markets…
A: All firms seek to maximize profit and economists in general consider this is a good thing in most…
Q: 18. The Beveridge curve gives a a. Positive; Inflation and unemployment b. Positive; Inflation and…
A: Mortensen-Pissarides Model which is based on a thorough and comprehensive exposition of the…
Q: un equilibrium, a monopolistically competitive producer achi
A: monopolistically competitive market, the sellers sell differentiated produces which are close…
NPV analysis is important in determining price sensitivity: True or False
Step by step
Solved in 3 steps
- You are an economist. Your friend started a new business selling masks. She asked for your help in making some important decisions. From the data obtained from her, you computed the Price Elasticity of Demand (PED) of Masks, and found absolute PED in February was 1.26, and since then the absolute PED of Masks declined by 30% in June. (a) Based on the PED of June, you would advise your friend for an increase/decrease/unchanged in the price - Insert one word answer (increase/decrease/unchanged) (b) The market price of the mask in July was Tk15 per unit. The total revenue earned in July was Tk300. You received the data for August and observed that the price now in August is Tk26 per unit and the quantity of masks sold in August is 9 units. Calculate the absolute value of Price Elasticity of Demand (PED) for masks from July to August. Do not convert into percentage. Give your answer in 2 decimal places. Eg. If you get PED = -0.253 then submit 0.25You are an economist. Your friend started a new business selling masks. She asked for your help in making some important decisions. From the data obtained from her, you computed the Price Elasticity of Demand (PED) of Masks, and found absolute PED in February was 1.86, and since then the absolute PED of Masks declined by 55% in June. (a) Based on the PED of June, you would advise your friend for an increase/decrease/unchanged in the price - (b) The market price of the mask in July was Tk20 per unit. The total revenue earned in July was Tk300. You received the data for August and observed that the price now in August is Tk28 per unit and the quantity of masks sold in August is 12 units. Calculate the absolute value of Price Elasticity of Demand (PED) for masks from July to August.Suppose Government of Pakistan wants to put a curb on public smoking. Studies indicate that the price elasticity of demand for cigarettes is about 0.4. If a pack of cigarettes currently costs Rs.175 and the government wants to reduce smoking by 30 percent, by how much should it increase the price? Kindly type only percentage change in the box given below. Do not use percentage sign in the box. Also, do not use any plus or minus sign in the box.
- Mead Plumbing currently sells thread seal tape at a price of $42.00 per roll. Their research department has derived the price-demand equation as p = 60 -0.02x where x is the number of tapes that can be sold at $p per roll of tape. (d) If the current price changes by 10%, what will be the approximate percentage change in demand? (e) Find the price at which a percentage change in price produces the same percentage change in demand.The estimated monthly sales of Mona Lisa paint-by-number sets is given by the formula q = 105e3p- + P, where q is the demand in monthly sales and p is the retail price in hundreds of yen. (a) Determine the price elasticity of demand E when the retail price is set at ¥700. E = Interpret your answer. The demand is going down v is advised. by % per 1% increase in price at that price level. Thus, a large price decrease (b) At what price will revenue be a maximum? hundred yen (c) Approximately how many paint-by-number sets will be sold per month at the price in part (b)? (Round your answer to the nearest integer.) paint-by-number sets per monthThe demand function for FreshFood Exclusive Brand's product is D = 80 - 2p , where D is the number of units and 'p' is the price per unit. The value of D that will achieve maximum revenue is
- Help Calculate the numerical value of cross-price elasticity, exy, in each of the following situations. Do not round your interim calculations before obtaining the final solution (i.e. do not clear your calculator). In each case, express the number to two decimal places and include a negative sign where appropriate (i.e. -1.67, not -1.7 or 1.667) but leave positive values without a plus sign (i.e. 1.67, not +1.67). Identify whether the two products in italics are substitute or complementary products. a. The price Consumer X pays each month for access to the Internet decreases from $40 to $20, causing his quantity demanded of e- magazines he reads on his computer to rise from 3 to 5. The numerical value of cross-price elasticity is The Internet and e-magazines are (Click to select) v products. b. The quantity demanded of do-it-yourself hair-cutting sets increases from 5,000 to 10,000 when the average price of a hairstylist's cut rises from $25 to $40 per hour. The numerical value of…Calculate the numerical value of cross-price elasticity, exy, in each of the following situations. Do not round your interim calculations before obtaining the final solution (i.e. do not clear your calculator). In each case, express the number to two decimal places and include a negative sign where appropriate (i.e. -1.67, not-1.7 or 1.667) but leave positive values without a plus sign (i.e. 1.67, not +1.67). Identify whether the two products in italics are substitute or complementary products. a. The price Consumer X pays each month for access to the Internet decreases from $50 to $35, causing his quantity demanded of e- magazines he reads on his computer to rise from 4 to 5. The numerical value of cross-price elasticity is The Internet and e-magazines are complementary products. b. The quantity demanded of do-it-yourself hair-cutting sets increases from 5,000 to 15,000 when the average price of a hairstylist's cut rises from $30 to $50 per hour. The numerical value of cross-price…Electricity accounts for almost 20% of the production costs of aluminum smelters. A 10% increase in the price of electricity leads the smelters to reduce their production, thus lowering their demand for electricity by 5%. The adoption of recent technological innovations would allow aluminum plants to use less electricity in the future. This suggests that the demand for electricity by aluminum smelters in the short term is (a) inelastic. (b) less elastic than their demand for electricity in the long run. (c) Both of the above answers are correct. (d) None of the above answers are correct.
- Mr. Jones sells scrapbooking materials. He charges $20 per album and sells 120 albums month at this price. He plans to decrease the price to generate more sales. A survey indicated that for every $0.50 decrease in price, he can expect to sell 5 more album s. a) Write the expressions for the price of an album and the number of albums sold in one month b) Write an equation for the revenue using your expressions from part a. c) What price will generate the maximum revenue?If a firm finds that it can sell $13,000 worth of a product when its price is $5 per unit and $11,000 worth of it when its price is $6, then Multiple Choice eBook the demand for the product is elastic in the $6-$5 price range. the demand for the product must have increased. elasticity of demand is 074. the demand for the product is inelastic in the $6-$5 price range. Mc 10When the price of a gallon of milk increases from $6 to $8, quantity demanded decreases to 27 gallons. Assuming the price elasticity of demand for milk is -0.3, what is the original quantity demanded? (assuming further that this is the point elasticity relative to the original point on the demand curve.) Please make sure you give a numerical answer with no units and/or space or period (.) or comma (,) before or after your answer. Enter your answer here