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Illustrate THREE (3) reasons why not all commodities are suitable to represent
money. Please give explanation in details with examples.
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- 1. Over the last decade, the U.S. has relied on two strategies to combat the use of illegal drugs, reducing the flow of drugs into the country and educating people of the harmful affects of drug use. We want to consider how the market for illegal drugs is affected by these changes. A. Assume the space below shows the market for illegal drugs, before the interventions noted above. Label both axes and all lines/curves. Indicate initial equilibriums with 0 subscripts (Po, Qo). B. Clearly show the shifts in supply and demand (if any) and the new equilibrium price and quantity. Properly label everything. Label new lines and new equilibriums with 1 subscripts (P₁, Q1, D₁, S₁). C. Given the changes you found above, is it possible that the price of illegal drugs could have fallen due to these interventions? If it is possible, which intervention needs to be more successful? If it is not possible, explain why both interventions will increase the price of illegal drugs.Graphically demonstrate how the following economic events influence (ceteris paribus) the relevantsupplyfunction. Label your axes, and specify the market you are discussing. (a) Strong profits in the market for cyber security attract new firms. (b) Low-cost energy reduces the expense of producing and storing ice cream1. Why do we need microeconomic models? Using appropriate diagram(s), explain howchanges in a factor that affects demand, supply, or a new government policy alters themarket (equilibrium) price and quantity of a good.
- a) i)Explain difference between; ii,Microeconomics and macroeconomics iiiPositive and Normative economics b) Given the following demand and supply functions as; i)Find the price elasticity of demand and price elasticity of supply at the equilibrium point. ii)Based on the values obtained from Price elasticity of supply in (i) above, what advice would you give to the producer if he is to increase revenue? iv)Using illustrations, distinguish between Minimum and maximum price v)Assuming the government, set the price at 45shs, determine whether its minimum or maximum price, and state the surplus or deficit1. Evaluate and critique the methodology of microeconomic analysis and apply this methodology to economic policy analysis. 2. Based on the laws of demand and supply, design an example to show how the increase in a supplier's price will normally affect the demand of the consumer. In addition, explain in detail how the decision of a consumer to purchase goods regardless of the price will affect the supplier.this response. Question 36 Ben Solo and Jerry Jones both produce cones and ice cream. Their production possibilities are shown below. They are considering trading. Ben Jerry Cones Cones 6 4. A 3 0 1 2 Ice Cream Ice Cream (If you can't see the image of want to see a larger versioh click here.) Give an example of a trade price where both would benefit from trade. cones per unit of ice cream. A Moving to another question will save this response.
- Topic One: Substitutes and Complements 1. How do retail stores display their merchandise taking into account substitute or complementary goods? Give some examples. 2. Have your purchases been influenced by these marketing techniques? Give some examples. Topic Two: Measuring Opportunity Cost How would you suggest to measure the opportunity cost of a parent that chooses to play with their child vice play sudoku? How would you measure the opportunity cost of the kid? Topic Three: Marginal Analysis, Opportunity Cost We read this week that opportunity cost must be used to make rational decisions, we also read that people should make decisions after considering marginal benefit versus marginal cost. Could you think in situations that you could use opportunity cost, marginal benefit and marginal cost concepts to make your own decisions? Provide examples.(1). Which of the following is the best definition of economics? A) the study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided B) the study of how consumers spend their income C) the study of how business firms decide what inputs to hire and what outputs to produce D) the study of how the federal government allocates tax dollarsOption Baseball Bats Tennis Racquets A 20 2 19 C 4 18 6. 16 8 10 F 10 The table above shows the production possibilities frontier for a company producing only 2 goods: baseball bats and tennis racquets. Suppose the company is currently producing 4 bats and 10 racquets all of which have been ordered by customers. If customer John puts in an order for 4 bats, so that the total number of bats to produce would then be 8, what is be the opportunity cost of filling John's order? 8 racquets 10 racquets nothing 18 racquets
