1. Discuss the role of Government in setting prices; explain with the help of graph the concepts of ceiling price and floor Price. Differentiate the change in quantity supplied and the change of supply with the help of graphs? 2. Plot the Quantity demanded and Quantity Supplied on graph. Show the equilibrium price and quantity. In addition highlight the area of surplus and shortage as well.

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A: The production possibility schedule represents the bundles of commodities an economy can produce at…

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A: Given: The various production functions are, as: 1) Y = K1/2L1/3 2) Y = 3K1/2L1/2 3) Y = K1/2 + L1/2…

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A: reserve ratio refers that the ratio which is determined by the central bank for the domestic bank…

Q: What is demand pull and cost push inflation in economics?

A: Demand pull inflation in simple words we can say that it is the inflation that generally describe…

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A: Complementary goods are those goods which are both depend with each other so if the price of one…

Q: What is law of supply? And what are the assumptions of the law of supply?

A: The number of units of a good that a producer is willing to sell in the market at different prices…

Q: 0.6 As a consumer moves along an indifference curve, then each point to the right of a given point…

A: # The correct option is (B)

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A: There are two players : Horizon & Mobile Inc.Strategy set of Horizon = Strategy Set of Mobile…

Q: Which of the following events is expected to cause the equilibrium quantity to rise? demand…

A: demand and supply is the main factor which can affect the price and quantity in market so we can…

Q: All of the following are examples of common fixed costs except Multiple Choice sales commissions…

A: Fixed cost are that cost which is fixed in nature , which is not changing so we can find the answer…

Q: A demand curve shows the relationship between a) price and technology. b) the demand and supply…

A: demand curve represent the relation between price and quantity we can choose the correct option as…

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A: Present worth, also known as present value, is a financial concept used to evaluate the current…

Q: 7. The following facts apply to a small, imaginary econormy. Consumption spending is $6,720 when…

A: The fiscal multiplier calculated  the effect that increases in fiscal spending will have on gross…

Q: copy from the record company. This instance serves as an example of: O market power. O inefficient…

A: The markets are the place where the buyers, and sellers of the goods, and services meet, and…

Q: When equilibrium price rises but equilibrium quantity remains unchanged, the cause is A Supply and…

A: If demand increments and supply stays unaltered, a lack happens, prompting a higher equilibrium…

Q: 3. Choose the correct answer. Only one answer may be marked/circled. 1. The equal service…

A: 1. Option A is correct because  Specified study period  Explanation  In order to satisfy the equal…

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A: Given :  Demand and Supply of jeans (assuming jeans to be good X) PdX = 100-5Qx-Qy PsX = 50+Qx…

Q: 20.Price Elasticity of Demand of a good is (-)1. At a given price, the consumer buys 60 units of the…

A: As we know that when price decreases demand increases so by using the elasticity formula we can find…

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A: At point A, Saber is producing 15 units of wine and 25 units of cheese. Total wine produced at point…

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A: Disclaimer- “Since you have asked multiple question, we will solve the first question for you as per…

Q: LAW OF DEMAND I choose Betty crocker Scenario 2: a. If the company decides to earn more profits and…

A: The rule of demand is one of the most fundamental concepts in economics. It integrates the laws of…

Q: When other things remain unchanged, what can be expected if Blue-ray movies become significantly…

A: when the demand is more in the market price will be less so here we can choose the correct option…

Q: What's the future value of an 11%, 5-year ordinary annuity that pays $800 each year? If this was an…

A: here A=$800 n= 5 year  r = 11% so here we can use the Future Value of Ordinary Annuity  and  Future…

Q: Q.4. Suppose the following functions are estimated for Pakistan economy. The consumption function is…

A: Aggregate demand is the value of total output produced in an economy at a given period of time. The…

Q: What happens when production is inside the production possibilities curve? The production is not…

A: Production possibilities curves represent the possible production of the goods and services with…

Q: Q2/choose the right answer 1- I _work very hard because I have an exam next week. A) am having B)…

A: 1. The answer is - D) have to Hence, I      have to      work very hard because i have an exam next…

Q: Other things remain equal, which of the following factors causes the market supply curve of Blue-ray…

A: shifting of demand curve depend upon the different situation we can choose the answer below as…

Q: Determine whether each of the following topics would more likely be studied in microeconomics or…

A: There are two type of economics - 1) Microeconomics- it is the that type of economics which can deal…

Q: The government raises taxes by $100 billion. If the marg nal propensity to consume is 0.8. What…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Suppose that as the price of X falls from $4 to $3 and the quantity of X demanded increases from…

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A: The target rate of unemployment means the lowest possible level of unemployment desired in the…

Q: Use the table below to calculate the bid rent for manufacturing in Burgville in dollars per acre.…

A: so by using the formula we can calculate the Bid Rent as follow-

Q: Example 46. If the demand function is p = 25 – 3x - 3x, find the consumer's sume when p=7

A: A consumer surplus refers  when the price that consumers pay for a product or services is less than…

Q: 14) Which of the following Fed actions reduces the money supply? O A) Increasing the amount of loans…

A: Fed action is the tools which is used for regulating the money supply in the economy , so there is…

Q: Consider the following production function: Q = 55 K/L4/3 A. Determine whether this production…

A: Production function is the relationship between the technology and output , so it has increasing…

Q: Use the table to answer the questions. Define productivity as GDP per worker, and please enter all…

A: GDP per workers refers that how much per worker gives their share in GDP growth  it is also known as…

Q: What is law of variable proportion?What are the assumptions of the law?

A: In simple words we can say that the law of variable proportion is the that which always takes place…

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A: Marginal Gain is calculated by  Total problem or TPn - TPn-1  so we can solve this as follow-

Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.