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The price of Tomato rises to Rs 50 per kg. So it's demand falls but another magazine prints that tomato contains important nutrients, it increases the demand for them. Explain the affect in demand of two.
what non-price determinant causes a pent up demand and how does it cause?
When a market is in equilibrium, given all the other factors that influence demand and supply, what happens to the buyers and the sellers?
A consumer buys bread (b) and milk (m) each week at price Rs. 10 and Rs. 8 respectively. Suppose that the consumer's current consumption of bread and milk is giving him MU (bread) = 80 and MU (milk) = 70 . Is the consumer buying the utility maximization combination of bread and milk? If not how should he reallocate his expenditures between the two goods to maximize utility? Draw diagram and explain
Assume a production function with constant returns to scale. The share of capital in production is 1/4 and the share of labor is 3/4. If both labor and capital grow at 1.6% and real output grows at a rate of 2.8%, what is the growth rate of total factor productivity?
2.8%
1.6%
1.2%
1.0%
2.8%
1.6%
1.2%
1.0%
Suppose that Omar’s marginal utility for cups of coffee is constant at 2.5 utils per cup no matter how many cups he drinks. On the other hand, his marginal utility per doughnut is 10 for the first doughnut he eats, 9 for the second he eats, 8 for the third he eats, and so on (that is, declining by 1 util per additional doughnut). In addition, suppose that coffee costs $1 per cup, doughnuts cost $1 each, and Omar has a budget that he can spend only on doughnuts, coffee, or both. How big would that budget have to be before he would spend a dollar buying a first cup of coffee?
During 2013, the demand for LCD TVs appeared to be falling. At the same time, some industry observers expected that several smaller TV manufacturers might exit the market. Use a demand and supply diagram to analyze the effects of these factors on the equilibrium price and quantity of LCD TVs. Clearly show on your diagram the old equilibrium price and quantity and the new equilibrium price and quantity. Can you tell for certain whether the new equilibrium price will be higher or lower than the old equilibrium price? Briefly explain.
The price elasticity of demand for petrol used by car drivers in an economy is estimated to be -0.2
Which of the following is the likely reason for the low PED?
- a tax on petrol
- cycle lanes on many roads
- few bus and rail services
- low household incomes
Which of the following is the likely reason for the low PED?
- a tax on petrol
- cycle lanes on many roads
- few bus and rail services
- low household incomes
draw a production possibility frontier that shows the trade off between the production of cotton and soybeans.
Explain with the aid of a properly labelled diagram, the marginal revenue curve facing a perfectly competitive firm.
