MTN E 1:02 PM MBA GROUP C assignmentct2017 AND PUBLIC ADMINISTRATION (GIMPA) MAS

Question

MTN E 1:02 PM MBA GROUP C assignmentct2017 AND PUBLIC ADMINISTRATION (GIMPA) MASTERS PROGRAMME IN BUSINESS ADMINISTRATION 2017/2018 ACADEMIC YEAR BUSINESS ECONOMICS ASSIGNMENT Due: 8th Nov 2017 Instruction: Answer All Questions Question 1 (30 marks) a) The inverse demand functions of two towns for a product are given as, demand of these two towns 5 marks b) The supply and demand functions for a product are i) Find the equilibrium price and quantity ii) Sketch a graph to show the results in i) above ii) Assume the equilibrium price is 80 pesewas (P-0.80) defined as, -100 and-sp10 5 marks 5 marks and find the PES and PED associated with a small increase in price from the current price of 80 pesewas. 10 marks iiii) What is the incidence of a unit tax of Ghs 0.60 imposed on the producer? 5 marks Question 2 (30 Marks) a) The price of a product in two towns is given as, P-2.12-0 in town 1 and demand for the product across these two towns. What is the market demand when the price of the product is 2 cedis? 10 marks 10 in town 2. Find the market b) To reduce the violence associated with the narcotics drug Latin American countries leaders of some trade in many of these producing countries have suggested legalizing

Explanation / Answer

your demand functions are not properly visible,but i will tell u the solution

a) add both these demand functions, you will get the market demand function in terms of one quantity.

b) equate these demand and supply functions equal to each other

you will get the quantity and then put back in that function to get the price.

plot the graph to show upward sloping supply curve and downward sloping demand curve. They both intersect at the equilibrium quantity and equilibrim price wich we found above.

when the tax is imposed, the price will increase.

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.