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

Financial crisis in terms of adverse, Briefly explain the dynamics of the 2...

Briefly explain the dynamics of the 2007 financial crisis in terms of adverse selection and moral hazard.

Gdp, what is gdp

what is gdp

neumann-morgenstern utility index- risk premium, Question 1 Consider an...

Question 1 Consider an investor who has the von Neumann-Morgenstern utility index u(x ) = 3 + 4√ x An investment provides income according to two possible future scenari

Explain negatively impacted productivity of the project, Describe your most...

Describe your most positive experience in working on a group project in which the group's cohesiveness led to greater work productivity. Have you experienced a situation that was j

Diseconomies of scale, What are the four managerial factors that lead to di...

What are the four managerial factors that lead to diseconomies of scale

Aggregate supply - long run equilibrium:graphical analysis, Long Run Equili...

Long Run Equilibrium:Graphical Analysis In the long run the natural rate of output is the level of output to which the economy will tend to adjust in the long run. This indicat

Firm wants to sell goods, If a firm wants to sell goods more often, would t...

If a firm wants to sell goods more often, would they prefer to produce a high quality good that will not wear out or one that will wear out faster. For example, what is the 'life e

Combination price of capital decreased, In reference to the above question,...

In reference to the above question, assume you know the combination of inputs that minimizes cost. What would happen to this input combination if the price of labor increased? What

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