Question Eleven Sharp Inc., a wholly Ghanaian owned company specializes in the production of hand sanitizers branded as Quin. The company has branches in all the regions in Ghana with its head office located at Cape Coast. It employs 1,200 people and pays an average of GH¢ 550.00 as income tax to the government of Ghana on a monthly basis. Suppose that seven thousand, eight hundred and twenty (7,820) units of Quin are produced and supplied by Sharp Inc. but the quantity demanded for Quin is eight thousand (8,000) units. Ceteris Paribus, a GH¢ 20.00 change in the price of Quin results in a change in quantity demanded for and supplied of 4 and 5 units, Ay respectively. [Hint: change in X due to change in Y is given as a ]. Given the above information: a) Determine the equilibrium price and equilibrium quantities of Quin. b) Suppose the Government of Ghana in the wake of the COVID-19 pandemic grants a subsidy of GHS 4.50 on each Quin produced. Compute the new equilibrium price and quantities of Quin. c) Sketch your solution to a) and b) on a graph (graph sheet not needed).

Question Eleven Sharp Inc., a wholly Ghanaian owned company specializes in the production of hand sanitizers branded as Quin. The company has branches in all the regions in Ghana with its head office located at Cape Coast. It employs 1,200 people and pays an average of GH¢ 550.00 as income tax to the government of Ghana on a monthly basis. Suppose that seven thousand, eight hundred and twenty (7,820) units of Quin are produced and supplied by Sharp Inc. but the quantity demanded for Quin is eight thousand (8,000) units. Ceteris Paribus, a GH¢ 20.00 change in the price of Quin results in a change in quantity demanded for and supplied of 4 and 5 units, Ay respectively. [Hint: change in X due to change in Y is given as a ]. Given the above information: a) Determine the equilibrium price and equilibrium quantities of Quin. b) Suppose the Government of Ghana in the wake of the COVID-19 pandemic grants a subsidy of GHS 4.50 on each Quin produced. Compute the new equilibrium price and quantities of Quin. c) Sketch your solution to a) and b) on a graph (graph sheet not needed).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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