When the price of eraser increases from R1.50….

/in /by

When the price of eraser increases from R1.50….

You might also like
You are given the following utility function and price of commodities q1 and q2: U = 3q1+q1q2-5q2-15 P1=3 and p2=2 If the corresponding bugdet is 20. i. Write the consumer's budget equation ii.construct a constrained utility maximization problem out of the information given above iii. Write the augmented objective function? Iv. Find the optimum level of U V. Is the second order condition for a maximum satisfied? Vi. Find the levels of q1 and q2 that will satisfy the first order condition for a maximum.
The following data refers to the demand for money (M) and the rate of interest (R) in for eight different economics: M (In billions) 56 50 46 30 20 35 37 61 R% 6.3 4.6 5.1 7.3 8.9 5.3 6.7 3.5 a. Assuming a relationship i M   R U , obtain the OLS estimators of  and  b. Calculate the coefficient of determination for the data and interpret its value c. Test the hypothesis that interest rate influences demand for money d. Compute the standard error of the regression coefficients and conduct test of significance at the 5% level of significance. e. If in a 9th economy the rate of interest is R=8.1, predict the demand for money(M) in this economy.
If the price of a complement in production increases then A. the supply of the related good will decrease. B. the demand for the related good will increase. C. the supply of the related good will increase. D. the demand for the related good will decrease
The free rider problem refers to the temptation of individuals to let others provide the public goods , with relevant example show that purely individualistic mechanisms will not generate the optimal amount of a public good because of the free rider problem
In a perfect competitive market the typical firm cannot affect the price of its output and so it maxmises profits or minimises losses when marginal cost is?
State whether the Statement is TRUE or FALSE. Also write the reason (Without reason your answer will not accepted) a) If value of cross price elasticity is positive then it means there are less close substitutes are available of that product. b) In case of luxury products, the own price elasticity of demand is greater than one. c) If salaries of journalist go up then demand curve of newspaper will shift upward. d) When price elasticity of supply is greater than one it means supply curve is flatter.
Terry’s utility function over leisure (_L_) and other goods (_Y)_ is _U_ (_L_, _Y)_ = _Y _+ _LY_. The associated marginal utilities are _MU__Y__ _= 1 + _L _and _MU__L__ _= _Y_. He purchases other goods at a price of $1, out of the income he earns from working. Show that, no matter what Terry’s wage rate, the optimal number of hours of leisure that he consumes is always the same. (a) What is the number of hours he would like to have for leisure? (b) Determine the MRS of leisure for labour (c) Draw a leisure-influenced labor curve
Emily has decided to spend one-third of her income on clothing. What is Emily’s demand curve for clothing? □ Emily’s taste – as reported in the previous question - has now changed. She now realizes the importance of savings and spends only one-tenth of her income on clothing, instead of one-third. How will Emily’s demand curve change?