Economic Answers Homework Questions

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Answering economics questions may become a significant problem for many students at a certain point in their education process. You may have a short economics question that seems not so hard and time-consuming, but when you finally get to do it, you realize that it is more complicated than it looks, and Google search is not helping at all. There are a few websites that offer economics questions and answers for free, but they do not always provide solutions to the particular problems you have. If you need assistance with your economics homework problems or need answers to economics worksheet, test or quiz questions, be it multiple choice or free answer questions, Assignment Expert will be glad to provide it. We offer professional help with questions in a variety of economics topics you may find confusing or difficult to comprehend. Ask your economics question here, and our economics experts will answer it for free. If you need a solution to the entire set of questions or assistance with an economics project, order now, and our economics experts will help you for a reasonable price.

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Suppose demand for good A is given by DA = 500 - 10 Pa + 2 Pb + 0.70I where Pa is the
price of good A, Pb is the price of some other good B, and I is income. Assume that Pa is
currently $10, Pb is currently $5, and I is currently $100.
a. What is the elasticity of demand for good A with respect to the price of good A at the
current situation? Interpret the nature of elasticity of demand.
A fixed exchange rate country experiences upward pressure on the exchange rate value of its currency. The central bank chooses to intervene in the market to maintain its fixed exchange rate. How would the central bank go about intervening? If the pressures for the currency to appreciate persist, would it be difficult to maintain the fixed exchange rate?
Industry researchers R.S. Platou predicted that, between 2016–17, oil prices would fall by
5%, production of oil by OPEC and the former Soviet Union would increase, and
deliveries of new tankers would exceed scrappage of older vessels. (Source: Platou
Report , www.platou.com).
a. Using suitable diagrams, explain how each of the following would affect the market
for tanker services: (i) a fall in oil prices; (ii) an increase in production by OPEC and
the former Soviet Union; (iii) new tanker deliveries; and (iv) scrappage of older
vessels.
b. Suppose that the net effect is to increase tanker rates. Illustrate the net effect on a
single diagram. Explain the impact on the quantity of tanker services used.
Mercury Airlines’ marginal revenue and demand curves cross the marginal cost curve at
quantities of 3,000 and 6,000 seats a week, respectively. All other data remain the same.
a. Calculate the profit under policies of (i) uniform pricing, and
(ii) Complete price discrimination.
b. Suppose that Mercury implements complete price discrimination. Explain why it
should sell up to the quantity where the buyer’s marginal benefit equals Mercury’s
marginal cost.
Suppose demand for good A is given by DA = 500 - 10 Pa + 2 Pb + 0.70I where Pa is the
price of good A, Pb is the price of some other good B, and I is income. Assume that Pa is
currently $10, Pb is currently $5, and I is currently $100.
a. What is the elasticity of demand for good A with respect to the price of good A at the
current situation? Interpret the nature of elasticity of demand.
21. Which of the following scenarios is consistent with a price change for a normal good?
a. The substitution effect is +2 and the income effect is -2.
b. The substitution effect is +2 and the income effect is +1.
c. The substitution effect is -2 and the income effect is -2.
d. The substitution effect is -2 and the income effect is +1.
e. none of the above


22. Which of the following scenarios is consistent with a price change for an inferior good?
a. The substitution effect is +2 and the income effect is -2.
b. The substitution effect is +2 and the income effect is +1.
c. The substitution effect is -2 and the income effect is -2.
d. The substitution effect is -2 and the income effect is +1.
e. none of the above



In the following question(s) you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X, (2) the equilibrium price (P) of X and (3) the equilibrium quantity (Q) of X.


9. Refer to the above. An increase in income, if X is a normal good, will: A) increase D, increase P, and increase Q. B) increase D, increase P, and decrease Q. C) increase S, increase P, and increase Q. D) decrease D, increase P, and increase Q.
Fill in the other columns of the table by calculating the marginal utilities for goods X and Y and the ratios of marginal utilities to price for the two goods. Assume that the price of both goods X and Y is $3. Be sure to use the “midpoint convention” when you fill out the table.
Based on quarterly data from 1995:I to 1998:IV, MTR Foods estimates that potato chip sales can be projected using the equation S, = 50,00,000 + 1,00,000t where 1995:I is period 1. Actual fourth-quarter sales in thousands were as follows:
1995 5,450
1996 5,860
1997 6,270
1998 6,680
a. Project sales for the first three quarters of 1999.
b. Without using a seasonal adjustment,Project sales for 1999:IV.
C.Project Seasonally adjust sales for 1999: IV
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