Use the following information for Questions 1 to 3.
Australia produces ethanol from sugar cane, and the land used to grow sugar cane is also used
to grow food crops. Suppose that Australias production possibilities for ethanol and food
ECONOMIC PRINCIPLES ASSIGNMENT
Assuming the floods have destroyed 80% of the banana crop and ceteris paribus, there will be
a decrease in supply for bananas which will cause the supply curve to shift to the left as the
bananas have been destroy
Use the following figure, which illustrates the situation facing the publisher of the only newspaper
containing local news in an isolated community, to answer Questions 1 to 3.
a. On the graph, mark the profit-maximising quantit
Use the following data for Questions 1 and 2.
Sues Surfboards, in Question 1 above, hires workers at $500 a week and its total fixed cost is $1,000 a
Calculate total cost, total variable cost and total fixed cost of each
Agile Airlines profit on a route on which it has a monopoly is $10 million a year. Wanabe Airlines is
considering entering the market and operating on this route. Agile warns Wanabe to stay out and threatens
to cut the price so
Rain spoils the strawberry crop, the price rises from $4 to $6 a box, and the quantity demanded
decreases from 1,000 to 600 boxes a week.
a. Calculate the price elasticity of demand over this price range.
Percentage change in q
Question 1:The market for meat pies is characterised by the following graph.
a. At the competitive market equilibrium, what is the consumer and producer surplus? Is there
any deadweight loss? Explain.
The consumer surplus is the sum of a
Question 1:The figure below illustrates the competitive market for mobile phones.
a. What are the equilibrium price and equilibrium quantity of mobile phones?
The equilibrium price is 30 dollars and the equilibrium quantity is 100 mobile
Question 1: Classify each of the following items as a final good or service or an
intermediate good or service and identify which is a component of consumption
expenditure, investment or government expenditure on goods and services:
Use the following data to solve Question 1.
Billions of dollars
Wages paid to labour
Profit, interest and rents
The table lists some macroe
Poverty trap is a spiraling mechanism which tends to perpetuate people remain poor (Poverty
Education.org., n.d.). Poverty not only lack of income but also poor in health, education, living
standards and difficult to understand ambition becau