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

Short paperthus far in the course the primary focus has

Short Paper Thus far in the course, the primary focus has been on hospitals within the healthcare industry. For this short paper you will consider the economic issues related to long-term care facilities. In this assignm ...

Assignment 1 -i watch the videos on demand and supplythere

Assignment 1 - I) Watch the videos on Demand and Supply There are 5 changes in Demand that shift the demand curve to the right or left.  They are Change in Tastes and Preferences Change in Income Change in Population Cha ...

Microeconomics paper-project paperthe paper is to be a

Microeconomics Paper- Project Paper The paper is to be a properly formatted (APA) paper that I expect will take at least 5 pages to do properly. It is to take the material discussed in the course and apply it to some iss ...

Assignmentthe paper is to be a properly formatted apa paper

Assignment The paper is to be a properly formatted (APA) paper that I expect will take at least 5 pages to do properly. It is to take the material discussed in the course and apply it to some issue or observation in your ...

Assignmentquestion a daoism amp confucianism as fisher

Assignment Question A: DAOISM & CONFUCIANISM. As Fisher states in our textbook, "Individuals often harmonize the apparently opposite characteristics of Daoism and Confucianism in their own lives." In what specific ways m ...

Microeconomics assignmentquestion 1 - read attachment

MICROECONOMICS ASSIGNMENT Question 1 - Read Attachment 1 Answer the following questions. Use diagrams where appropriate. [Assume that the Australian grape and wine industries are perfectly competitive markets]: Use deman ...

Econ discussionwith everything discussed with this course

Econ discussion With everything discussed with this course, first watch How we can make the world a better place by 2030. Then, offer your considerations as to whether this could work or not. Within your response, provid ...

New jersey human servicesassignment evaluation of the

NEW JERSEY HUMAN SERVICES Assignment: Evaluation of the Agency's Budgeting and Cumulative Report As a consultant, you need to develop an in-depth analysis and evaluation of the selected agency's budgeting and then provid ...

Assignmentthe paper is on googles business ethics in the

Assignment The paper is on Google's Business Ethics in the area of Sustainability. How does Google contribute or detract from various aspects of sustainability? Sustainable businesses make products and services which fil ...

Microeconomics assignmentdiscussion forumnote the video has

Microeconomics Assignment DISCUSSION Forum Note: The video has Closed Captioning. To activate it, start the video, mouse over the bottom of the video and click on the CC icon, then select from the menu. This week's discu ...

  • 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