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Answers: 1. a The income elasticity of demand captures proportionate change in demand for a corresponding proportionate change in income (Baumol & Blinder, 2015) Due to recession demand of consumers reduces by 10 percent. Given the income elasticity of pre-recorded music compact is +7, the 10 percent decline in consumers’ income reduces demand for pre-recorded compact disc by (10*7) = 70 percent. for cabinet maker’s work, the...Read More
Answer: The total cost functions are polynomial in nature. Therefore, the total cost functions will be TC1= 50Q + Q2 + 1000 TC2 = 30Q + Q2 + 3000 TC3 = 2Q2 -2.62E-10 Here it is given that P=2034-Q Multiplying with Q, we get the total revenue as PQ=2034 Q– Q2 or TR= 2034Q- Q2 The profit maximizing output will be calculated when MR=MC TR =2034Q- Q2 MR = 2034-2Q TC1 =50Q + Q2 + 1000 MC1= 50+2Q By...Read More
Answer: Introduction Most Western narratives portray the distorted images and fabricated opinions of the Islamic faith and Muslims (Shadid & Koningsveld, 2002, 174-96). The negative attitude towards Islam is largely formed due to the stereotypes and prejudice. The motive behind such practice is to make a distinction between the ‘we’ and the ‘them’, we being the majority Western population and the being t...Read More
Answer: The attempt to adapt an inflation targeting policy in Australia began since 1993. Governor Fraser took the initiative to set the targeted inflation within 2 to 3 percent. Unlike Canada an =d New Zealand, there was no sudden shift in policy regime in Australia. There was neither any formal agreement between central banks and government during this time. Instead, RBA took a medium term strategy along of inflation targeting in relat...Read More
Answer Introduction War within a country has adverse impacts on economic growth. In addition to deaths realized within the times of war, the consequences extend far beyond that to affect the lifestyle of the people within the country. War within a country is particularly devastating because of its impacts on supply and demand for the good. It increases the demand for many types of goods services (Kesternich, Siflinger, Smith & Winte...Read More
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