Question 1 a. Draw a production possibilities curve for a hypothetical economy producing capital goods and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Question 1 a. Draw a production possibilities curve for a hypothetical economy producing capital goods and consumer goods Illustrate economic growth and use (A) to represent an inefficient b. Explain the law of increasing opportunity cost. c. Explain why scarcity forces individuals and society to incur opportunity costs. Give three (3) specific examples. Question 2 Market researchers have studied the market for orange juice, and their estimates for the supply and the demand for orange juice per month are as follows: Price per gallon ($) 250 2115 200 150 100 50 Quantity demanded 200 300 400 500 600 Quantity Supplied 600 500 400 300 200 a. Using the above data, graph the demand for and the supply of orange juice. Identify the equilibrium point as E, and use dotted lines to connect E to the equilibrium price on the price axis and equilibrium quantity on the quantity axis. .. b. Assume that the government decided to set a price ceiling of $100 per gallon. i) Define price ceiling ii) Explain three effects na inis legal maximum price will have on the supply of orange juice in the market. (Draw a new hypothetical diagram to illustrate) Question 3 a. Calculate the cross-price elasticity of demand for porridge oats and milk sold in a supermarket if at the end of last period, the price of the porridge oats rose from $150 to $210 and the demand for milk sold, moved from 200 units sold to 180 units. State whether you think these two goods are complements or substitutes. b. Consider the case where the manager of KFC finds that the number of two-piece meals consumed per week fell from 1200 to 1000 boxes when the price of its meals was increased from $400 to $520. 1 i) Calculate the price elasticity of demand. Show your calculations. ii) If the KFC manager wishes to raise revenue, what is the appropriate action to take? (4 marks) c. Given that the demand function for banana chips may be written Qd-200-3p, where p is the price for banana chips, and the supply may be written as Qs=30+2p. Determine the equilibrium price and quantity Question 4 a. Describe five (5) factors that influence the market demand for a product such as personal computers. b. Explain three (3) characteristics of the planned economy. Give one example for each. Question 1 a. Draw a production possibilities curve for a hypothetical economy producing capital goods and consumer goods Illustrate economic growth and use (A) to represent an inefficient b. Explain the law of increasing opportunity cost. c. Explain why scarcity forces individuals and society to incur opportunity costs. Give three (3) specific examples. Question 2 Market researchers have studied the market for orange juice, and their estimates for the supply and the demand for orange juice per month are as follows: Price per gallon ($) 250 2115 200 150 100 50 Quantity demanded 200 300 400 500 600 Quantity Supplied 600 500 400 300 200 a. Using the above data, graph the demand for and the supply of orange juice. Identify the equilibrium point as E, and use dotted lines to connect E to the equilibrium price on the price axis and equilibrium quantity on the quantity axis. .. b. Assume that the government decided to set a price ceiling of $100 per gallon. i) Define price ceiling ii) Explain three effects na inis legal maximum price will have on the supply of orange juice in the market. (Draw a new hypothetical diagram to illustrate) Question 3 a. Calculate the cross-price elasticity of demand for porridge oats and milk sold in a supermarket if at the end of last period, the price of the porridge oats rose from $150 to $210 and the demand for milk sold, moved from 200 units sold to 180 units. State whether you think these two goods are complements or substitutes. b. Consider the case where the manager of KFC finds that the number of two-piece meals consumed per week fell from 1200 to 1000 boxes when the price of its meals was increased from $400 to $520. 1 i) Calculate the price elasticity of demand. Show your calculations. ii) If the KFC manager wishes to raise revenue, what is the appropriate action to take? (4 marks) c. Given that the demand function for banana chips may be written Qd-200-3p, where p is the price for banana chips, and the supply may be written as Qs=30+2p. Determine the equilibrium price and quantity Question 4 a. Describe five (5) factors that influence the market demand for a product such as personal computers. b. Explain three (3) characteristics of the planned economy. Give one example for each.
Expert Answer:
Answer rating: 100% (QA)
Based on the information provided lets address the questions one by one Question 3a Calculate the crossprice elasticity of demand for porridge oats and milk sold in a supermarket if at the end of the ... View the full answer
Related Book For
Posted Date:
Students also viewed these economics questions
-
Explain how to determine whether the law of increasing opportunity cost holds for paper towel production at Pinnacle Paper Products.
-
Explain the law of increasing opportunity cost. What causes costs to increase?
-
Explain the law of large numbers.
-
The _____________ works out the best way to structure finances and make effective financial decisions.
-
Define the following terms and explain how they are related: greenwashing, business case, Friedman criticism.
-
Return to the bicycle manufacturer NatBike in Exercise 6. Assume that the plant has a capacity of 20,000 bicycles. If additional capacity can be added at a cost of $25 per bicycle, how should NatBike...
-
Describe cooling and leakage drag.
-
Juniper Corp. makes three models of insulated thermos. Juniper has $400,000 in total revenue and total variable costs of $240,000. Its sales mix is given below: Percentage of Total Sales Thermos A...
-
Consider the non-periodic signal, x(t) = eat with t ranges from 0 to +. a) (7 pts) Derive the fourier transformation X(w) = f x(t). ejot do. Attached your answer on a separate sheet or include here.
-
Hastings College pooled the individual investments of three of its funds on December 31, 2024. The recorded value and the fair market value of the investments on December 31, 2024, are presented...
-
What is the general goal of the cipher modes? Why is the ECB mode not recommended? Briefly describe how the CBC mode works. Typically, are stream ciphers more robust than block ciphers? What is...
-
Consider an economy where we can describe the behaviour of aggregate macroeconomic variables using the monetary model Using the money supply/demand diagram, we want to understand what happens to the...
-
How will organizations justify the cost of SCRM on their bottom line? Or how will organizations justify the expense involved in becoming more resilient? And does SCRM negatively impact the...
-
[ Intermediate Macroeconomic Theory II Practice] i.Short-answered questions 1.Define Cobb-Douglas production function and explain the meaning of each element. 2.Define the types of unemployment and...
-
Overview: This is a group assignment that allows students to apply what they learned in ECON 1001. Students will explain one or more basic global macroeconomics concepts and principles (CLO 2). They...
-
Now that we know how we calculate GDP and we learned how portions of GDP are affected by economic variables, lets have a thought experiment. Imagine your country is in a recession, so GDP is down,...
-
It would help if you used estimation when finding a primary source that gives the exact value. Group of answer choices True False
-
Coastal Refining Company operates a refinery with a distillation capacity of 12,000 barrels per day. As a new member of Coastal's management team, you have been given the task of developing a...
-
How would an economist answer the question: "What is the appropriate level of government involvement?"
-
In support of the Fed's monetary policy prior to the deflation of the home prices bubble, one can argue that the reality is that increasing the money supply and low-interest rates were required to...
-
Explain why Monetarists believe the Fed should have expanded the money supply during the Great Depression?
-
In testing the claim that the mean IQ score of statistics students is greater than 100, the alternative hypothesis is expressed as > 100. Decide whether the statement makes sense (or is clearly...
-
In testing a claim about a population mean, a larger z test statistic always results in a larger P-value. Decide whether the statement makes sense (or is clearly true) or does not make sense (or is...
-
A handy mnemonic for interpreting the P-value in a hypothesis test is this: If the P (value) is low, then the null must go.
Study smarter with the SolutionInn App