Category: Economics

Qd = 700 – 4P Qs = 100 + 2PThe government adopts a price support program for wheat, and supports the price of $120. Calculate the cost to the government and the direct consumers’ expenditure.

Which of the following words has a different meaning than the others?Select the single best answer:A. fecklessB. exorbitantC. incompetentD. unqualifiedE. All are synonyms or near-synonyms.

Policy-makers who advocate for minimum wage laws do so because they believe workers should be paid based on their level of need as opposed to their productivity.Question 53 options: True False

➤ How does the market respond when a shortage occurs?
When a shortage exists, the market typically responds through the price mechanism. Higher prices reduce quantity demanded and raise quantity supplied until supply and demand meet at a new equilibrium. Firms may also increase production or reallocate goods, while governments can intervene with rationing or by removing price controls.

The World’s Total Fertility Rate (TFR) went from around 6-7 to 2. Given your com- putations in (1) and (2), what can we say about hoarding as a theory to explain the Fertility Transition?

➤ How does e-commerce create specific technical roles in a company?
E-commerce needs software to manage catalogs, payments, and customer experience. Teams build recommendation engines, search algorithms, inventory systems, APIs, and secure payment integrations. They also rely on cloud services, automation, and machine learning for personalization and fraud detection, increasing demand for engineers, data scientists, and cloud architects.

➤ How do you calculate the price elasticity of demand for Benny’s rentals?
Use the midpoint elasticity formula. Percent change in quantity = (7−5)/((7+5)/2)=2/6≈33.33%. Percent change in price = (2.5−3)/((2.5+3)/2)=−0.5/2.75≈−18.18%. Elasticity = 33.33% ÷ 18.18% ≈ 1.83. That means a 1% price decrease raises quantity demanded by about 1.83%. This qualifies Benny’s rental demand as price elastic.