Determine the cross elasticity demand for margarine, Macroeconomics

Assignment Help:

Question 1:

(a) Distinguish between the short run and long run profits of a competitive firm by using graphical representations.

(b) Compare and contrast between perfect competition and a monopoly.

(c) Analyse the concept of economies of scale and the law of diminishing return.

Question 2:

(a) Describe what is meant by price elasticity, income elasticity and income elasticity of demand.

(b) What are the practical implications of the above concepts for a business?

(c) Consider that the demand of butter increases from 20 to 25 when its price decreases from Rs 100 to Rs 80. Suppose also that the demand for margarine decreases from 30 to 26.

(i) Determine the price elasticity demand of butter.
(ii) Determine the cross elasticity demand for margarine.
(iii) How are the two good related? Justify your answer.


Related Discussions:- Determine the cross elasticity demand for margarine

Money supply.., term paper on determinat and multiplier of money supply

term paper on determinat and multiplier of money supply

Stock trading company, An online stock trading company makes part of their ...

An online stock trading company makes part of their revenue from clients when the clients trade stocks therefore, it is important to the company to have an good idea of how many tr

Effect of that on the tofu market, New technology was just invented that de...

New technology was just invented that decreases the cost of planting and harvesting soybeans: show the effect of this on the soybean market. Show the effect of that on the tofu mar

Groth model, what role does interst rate play in refernce to output?

what role does interst rate play in refernce to output?

The core of macroeconomics, Suppose in the Republic of Madison that the reg...

Suppose in the Republic of Madison that the regulation of banking rested with the Madison Congress, including the determination of the reserve ratio. The Central Bank of Madison is

Find the equilibrium quantity, Find the Equilibrium Quantity In a smal...

Find the Equilibrium Quantity In a small town only two candy shops operate and they compete with each other in quantity. Consumers do not differentiate between candies sold by

Retirement planning, For retirement planning, you decided to deposit $1,000...

For retirement planning, you decided to deposit $1,000 per month and increase your deposit by $100 per month. How much will you have at the end of 10 years if the bank pays 3% annu

Macroeconomic Analysis, Derive the conditions for steady state in the Solow...

Derive the conditions for steady state in the Solow model. What are its implications? In what respects is the golden rule different from the steady state?

Product information to consumers, Should the government increase, decrease ...

Should the government increase, decrease or remain the same in its level of intervention when it comes to mandating that companies provide product information to consumers? What ha

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd