Factors to consider before increasing priçe of commodities

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Factors to consider before increasing priçe of commodities

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You and a classmate are assigned a project on which you will receive one combined grade. You each want to receive a good grade, but you also want to avoid hard work. In particular, here is the situation: *If both of you work hard, you both get an A, which gives each of you 40 units of happiness. *If only one of you works hard, you both get a B, which gives each of you 30 units of happiness. *If neither of you works hard, you both get a D, which gives each of you 10 units of happiness. *Working hard costs 25 units of happiness. a. Fill in the payoffs in the following decision box: b. What is the likely outcome? Explain your answer. d. Another classmate cares more about good grades: He gets 50 units of happiness for a B, and 80 units of happiness for an A. If this classmate were your partner (but your preferences were unchanged), how would your answers to parts (a) and (b) change? Which of the two classmates would you prefer as a partner? Would he also want you as a partner?
Suppose the United States has no exports. The only imports of the US are 400 Mercedes Benz cars worth US$50,000 each from Germany. Germany has no imports and only exports those 400 cars to the US. Neither the US nor Germany trade with any other countries or engage in any transactions with other countries. Which one of the following statements must be true? (3) a) The US has a capital account deficit b) Germany has a current account deficit c) Germans are buying US assets d) The exchange rate of USD per Euro must be > 1 e) None of the above Explain your choice in detail: What would be the value of US-Germany trade?
Given Q = 100 - 4P, find our point elasticity of demand when the price of the product is Rs.10.
Consider a market for energy drinks consisting of only one firm. The firm has a linear cost function: C(q)=4q, where q represents quantity produced by the firm. The market inverse demand function is given byr P(Q)=24-2Q, where Q represents total industry output. Based on the given information answer the following. 1. What price will the firm charge? What quantity of energy drinks will the firm sell? 2. Now suppose a second firm enters the market. The second firm has an identical cost function. What will be the Cournot equilibrium output for each firm? 3. Whay is the Stackelberg equilibrium output for each firm of firm 2 enters second? 4. How much profit will each firm make in yhe Cournot game? How much in Stackelberg? 5. Which type of market do consumers prefer: monopoly, Cournot duopoly or Stackelberg duopoly?
Suppose widgets have a price elasticity of demand equal to -1,95 and a cross elasticity of demand equal to 2 with dundles. What are the pricing options for a firm that sells widgets? Explain.
Suppose that the consumer is asked to contemplate a gamble with a probability of 60% of winning Birr 10,000 with a utility of 10 utils, and a 40% probability of winning Birr 15,000 with a utility of 12 utils. A. What will be the expected income and expected utility of the consumer? B. If the utility of this consumer from a risk free alternative which gives him an income equal to the expected income of the risky alternative given above is equal to 11 utils, is this consumer risk lover or risk averse? Why? Illustrate your answer with the help of a diagram
An orange cost #5 and an apple cost #10. The first orange consumed by musa yielded marginal utility (MU) of 55 utils and at every subsequent consumption of an orange, the marginal utility (MU) diminishes by 5 utils while the first apple consumed by him yielded 80 utils and at every subsequent consumption marginal utility (MU) diminishes by 10 utils. A. Present this in a marginal utility (MU) schedule to the fifth orange and apple purchased. B. How many oranges and apple will he buy in order to maximize his utility? C. How much will he spend on the fruits? D. What should he do if his marginal utility (MU) of orange is 35 utils
The weekly demand for Kelewele among the 2018 batch of MBA students at UPSA is Qdx =900–10Px +0.2I+5Py –4Pz Where Qdx is the quantity demanded of Kelewele, Px is the price of Kelewele per lb, I is the consumer income in Ghana Cedis, Py and Pz are the prices of two goods that are related to Kelewele. a) Based on the demand function above, is d) What is the equation of the demand curve if consumer incomes are GHȼ 40, the price of good Y is GHȼ 20 and the price of good Z is GHȼ 27? 1 Mark e) Graph the demand function for Kelewele from d) Now suppose the weekly supply function for Kelewele at UPSA campus is QSx = -260 + 10Px – 2Pi Where QSx is the quantity supplied of Kelewele and Pi is the price of inputs used in preparing Kelewele. f) What is the supply function if input prices are GHȼ 20? g) Graph the supply curve from f)