Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Microeconomics Expert

Use the diagram below, that shows the demand and supply of labour in the sugar industry, to answer problem1.

1819_Demand and supply of labour.jpg

1) If there is a minimum wage in this industry (above equilibrium wage/price), then the effect of removing this minimum wage would be to

i) increase the equilibrium price and increase the quantity of labour demanded.
ii) decrease the equilibrium price and remove the shortage of labour.
iii) decrease the equilibrium price and remove the surplus of labour.
iv) increase the equilibrium price and cause a shortage of labour.
v) None of the above.

Use the figure below to answer problem2.

1255_Elasticity of demand.jpg

2) Rank the absolute value of the coefficient of the price elasticity of demand, from highest to lowest, across points A, B and C. The correct ordering is

i) A, B and C.
ii) A, C and B.
iii) C, B and A.
iv) B, A and C.
v) The coefficients are the same at A, B and C.

3) Ceteris paribus, every time the price of cashew nuts falls by R1/kg, the quantity of cashew nuts demanded increases by 10kg per day. From this we can infer that

i) the demand curve for cashews is not linear.
ii) the higher the price of cashews, the more price inelastic the demand curve becomes.
iii) the price elasticity of demand for cashews is constant.
iv) as price rises, demand at first becomes more price elastic and then later becomes less price elastic.
v) as price falls, demand becomes less price elastic.

4) If an individual’s income rises by 10%, ceteris paribus, his/her demand for a luxury good

i) increases by more than 10%.
ii) decreases by more than 10%.
iii) remains unchanged.
iv) increases, but by less than 10%.
v) cannot be predicted with out additional information.

5) Ceteris paribus, if a 10% increase in income has caused a 20% decrease in the quantity of paraffin demanded (at the current price), then from this we can conclude that paraffin is

a. price elastic.
b. a necessity.
c. a luxury good.
d. an inferior good.
e. price inelastic.

6) The following table represents the total utility for bread, butter and milk consumed by John. Derive John’s consumer equilibrium position for the three goods where the price of butter is R5 per unit, the price of bread is R1 per unit and milk is R4 per unit. John’s available income is R37.

You must show all your workings.

                  Butter                Bread                Milk
1                   21                    7                        23
2                   41                   13                       40
3                   59                   18                        52
4                   74                    22                       60
5                    85                   25                       65
6                    91                   27                       68
7                    91                 28,2                      70

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M93088

Have any Question? 


Related Questions in Microeconomics

Economic term paperempirical project the research project

Economic Term Paper Empirical Project The research project should be about 10 pages and should explain your data collection, model, and findings. The project (due by the final exam date) is worth 30% of your final grade. ...

Assignment questionsque1 why validation of the software

Assignment Questions: Que.1 Why validation of the software requirement is necessary? List some conditions that should be checked in the validation phase of software requirement. Que.2 Six Sigma is used to reduce the defe ...

Then answer the following questionsin the video it is

Then answer the following questions: In the video, it is mentioned that Whirlpool provides three different types of appliances that vary in the amount of features that are offered. Discuss the product differentiation acr ...

1 the crr model european claimconsider the crr model of

1. The CRR model: European claim. Consider the CRR model of stock price S with T periods and parameters d (a) Consider the European claim X with expiry date T and the payoff X = g(S r ) = 1/S T 1[k,∞)(S T ). Show that th ...

Great depression economy paperwritten assignmentplease

Great depression , economy paper Written Assignment Please provide a comprehensive answer to the following two questions: 1) Which were the main causes of the Great Depression? 2) Why did the Great Depression last so lon ...

Assignmentselect and review an inspection report posted on

Assignment Select and review an inspection report posted on the OSHA website. The inspection reports can be searched by industry group or establishment name by accessing the reports through the OSHA's Statistics & Data P ...

E8-9 periodic versus perpetual entries fong sai-yuk company

E8-9 (Periodic versus Perpetual Entries) Fong Sai-Yuk Company sells one product. Presented below is information for January for Fong Sai-Yuk Company. Jan 1 Inventory 100 units at $5.00  each Jan 4 Sale 80 units at $8.00  ...

Assignmentwhat are the two distinguishing properties of a

Assignment What are the two distinguishing properties of a public good? Explain each in one or two sentences. Give an example of a public good different from any of the examples in your text or my notes. What is the "fre ...

Create the demand and supply of the labor market and demand

Create the demand and supply of the labor market and demand and supply of the goods market using the production function and consumption utility function given. Solving the equations and graphing the models have to be th ...

Assignmentscenario summarya kansas city based supplier of

Assignment Scenario Summary A Kansas City based supplier of health care information technology (HCIT) solutions has recently hired you as a Human Resource Manager. You are in charge of hiring new medical consultants for ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen