with the aid of a fully labeled diagram explain what would happen in the market for sugar if the price of rooiboos tea increases, ceteris paribus
with the aid of a fully labeled diagram explain what would happen in the market for...
3) With the aid of a properly-labeled diagram, explain what would happen automatically if total planned spending (C+I) in Economia (a closed economy with no government) intersected the 45° line at a national income of $890 billion, but the economy temporarily found itself with national income of $900 billion. (20 marks)
(20 Marks) QUESTION With the aid of a fully labelled diagram, draw a Production Possibility Frontier (PPF) for an economy producing computers and pizzas. Use the diagram to explain the concepts of choice, scarcity and opportunity costs. (10 marks) 4.1 2 With reference to the diagram in question 4.1, distinguish between 'efficiency' and 'inefficiency. (4 marks) With the aid of a separate diagram, illustrate and explain what would happen if there was a discovery of an improved technique for producing...
With the aid of a well labeled diagram, explain the term overall driving force
the minister of agriculture has decided to supply fertilizers to strawberry farmer's at no cost. with the aid of well labelled diagram explain the effect of this(get rid paribus) in the market for strawberries. 60 MARKS] SECTION B Answer ANY THREE (3) questions in this section. QUESTION 3 (20 Marks) 3.1 The minister of Agriculture, Forestry and Fisheries has decided to supply fertilisers to strawberry farmers at no cost. With the aid of a well labelled diagram, explain the effect...
When is a competitive market in equilibrium? Equilibrium price and market price are the same thing (always equal)? When there are decreasing returns to scale, the law of supply holds. This law states that ---- A fourth law of economics is the law of equal returns. This law says that --- Why do we expect returns to equalize? Say revenues in an industry are $150 million annually, production costs in the industry are $125 million annually. What is the rate...
1. Explain, with the aid of a diagram, what happens to the money supply, money demand, the value of money, and the price level if the Central Bank increases the money supply.
Explain, with the aid of diagrams, how each of the following will affect the market for coffee: a) The price of tea declines sharply. b) Researchers find that drinking a cup of coffee a day reduces the probability of having a heart attack. c) A severe frost destroys much of the Brazilian coffee crop. d) Coffee prices are expected to rise rapidly in the next few months. e) Workers in the coffee industry go on strike. Please the Diagram is...
Use the money market equilibrium diagram to graphically show what would happen to the price level if the Federal Reserve buy government bonds.
1). Draw a fully-labeled aggregate demand/aggregate supply diagram showing an economy that is weak – it is producing below its full employment (“potential) GDP. a. What monetary policy would be appropriate for the economy? (contractionary or expansionary policy?) b. What would happen to interest rates in the economy if the Central Bank uses this policy? c. Show in your diagram how the policy impacts the economy, being sure to show what curve(s) moves, and what happens to prices and output...
What would happen if ... The current market price for good X is above the equilibrium price, and then the demand for X decreases. What is the likely outcome of the change in demand? Select one: O The shortage increases. O The shortage decreases. The surplus decreases O The surplus increases