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what is elasticity of supply?
If the multiplier is 4, a R40 billion increase in net exports will?
If the cross elasticity of demand between two goods is negative, * A. ONE OF THE GOODS MUST BE INFERIOR. * B. THE TWO GOODS ARE COMPLEMENTS. * C. ONE OF THE GOODS MUST BE A NECESSITY. * D. THE TWO GOODS ARE SUBSTITUTES.
EXPLAIN IN DETAIL BEHAVARIOL THEORY OF FIRM.?
A Professor of Economics from the Department of Economics Education of the Faculty of Social Sciences Education of the University of Education, Winneba, has estimated the demand and supply functions for students’ accommodation on campus to be respectively: 10P + 3Q = 60 and P = Q – 0.5 Further, the professor claims that the average cost of Hostel operators is AC = 20/Q+1+0.2Q If the hostel operators decide to maximize sales revenue instead of profit, show how this will affect consumer’s surplus. What is the producer’s surplus under pure competition at the equilibrium point?
Given the demand function P = 20 – 5Q, find the price elasticity of demand when price of the commodity is 5 Birr per unit. Mention if the demand is price elastic or inelastic at this point
Consumer buys 10 units of Good A when the price of Good B is $5. When the price of Good B rises to $6 (the price of Good A remaining unchanged) the consumer buys 14 units of Good A. Part A: Using an appropriate formula, calculate this Consumer’s cross Elasticity of demand for Good A. Show your working. Part B: Is Good A, a substitute for, or a complement to, Good B? Explain your reasoning.
Which firm has a dominant strategy? (2) What strategy should each firm follow?