Explain clearly with the aid of a graph the income and substitution effect of a price fall for a normal good

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Explain clearly with the aid of a graph the income and substitution
effect of a price fall for a normal good

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Consider a consumer who wants to consume only two commodities and has an income of $100. Assume the price of good 1 is $10 per unit and the price of good 2 is $20 per unit. Now, inflation causes the price of good 1 to increase to $20 per unit, while the price of good 2 increases to $25 per unit. On the other hand, the consumer also gets a raise of $100 (so her new income is $200). Is she better off or worse off?
Explain what “equity” means as it relates to taxation.
Given MUx = X, MUY = 4Y, Price of X is 3 Birr per unit and price of Y is also 3 Birr per unit. If the income of the consumer is 1200 Birr, find the amounts of X and Y that the consumer chooses to consume so as to maximize his utility.
With the help of a diagram, explain the conditions of a producer’s equilibrium in terms of marginal cost and marginal revenue approach.
Using an appropriate diagram, explain how does the long-run marginal cost derived?
If there is Savings in this Circular model, then what would eventually happen to income and revenue?
Assume there is an increase in the price of the wood used in the production of kitchen tables. Illustrate and explain how this would impact the equilibrium price and quantity of kitchen tables
A business is evaluating a project for which the following information is relevant: Sales will be K100,000 in the first year and are expected to increase by 5% per year. Costs will be K50,000 and are expected to increase by 7% per year. Capital investment will be K200,000 and attracts tax allowable depreciation of the full value of the investment over the 5 year length of the project. The tax rate is 30%. The business uses a real discount rate of 9%. Calculate the NPV for the project.