1. Let us consider a scenario involving the market of jackets. Due to persistent economic growth in Country A, the income of the general people increase significantly. At the same time, few new suppliers of jackets enter the market in order to sell jackets. What will happen to the equilibrium price and equilibrium quantity of jackets on account of the aforementioned changes in people’s income and the arrival of few new suppliers of jackets from the market? (Draw a diagram with proper labeling to graphically illustrate the changes in equilibrium price and equilibrium quantity of jackets. Also mention in few words about the change in equilibrium price and equilibrium quantity of jackets.)

2. Japan and Vietnam can produce two goods, chairs and sofas. The following table shows the quantities of chairs and tables produced by Japan and Vietnam in a day 5 marks

	Chairs	Sofas
Japan	1000	400
Vietnam	400	200

1. What is the opportunity cost of producing chairs for Vietnam?
2. What is the opportunity cost of producing sofas for Japan?

3. The demand and supply function for Good Z is given below-

Q_d = 320 - P

Q_S = -245 + P

1. What is the value of consumer surplus and producer surplus?
2. If 50 taka tax is imposed on sellers, what is the value of new consumer surplus and producer surplus after the imposition of tax?

4. Let us consider a short-run scenario where smart phones are produced in a factory. The fixed cost of producing smart phones is 7000 Taka per day. Furthermore, workers are also needed to produce the smart phones and the daily wage of a worker is 2500 Taka. Moreover, the price of a smart phone is 5000 Taka.

The following table shows the workers required in a day to produce different quantities of shirts. (It shows the maximum -

Worker per day	Smart phones (per day)
0	0
1	2
2	5
3	11
6	18
10	25

1. What is the marginal cost when quantity of smart phones produced increases from 5 units per day to 18 units per day?

What is the profit when 25 smart phones are produced and sold in a day?

Answer rating: 100% (QA)

Answer 1 DD represents demand curve and SS represents supply curve in the diagram below T... View the full answer