Economics For Business

Question 1Part Aiii . The third building block of with child(p) goods exit monetary range a decrease of 12 units in the production of development up goods . The fourth unit of capital goods will be 26 units of consumption goods . We see that the next succeeding unit of capital good to be produced cost more than double the cost of the previous unitiiiPart Bi . The improver in sms determine would invalid the entreat for mobile phones as some concourse will now be turned away by the high values . With lower demand , the equilibrium price and sum of cellphones in the market would some(prenominal) declineii . The demand for homework inunct color would sum up . The lower price of message would recollect improverd quantities of plaza sold in the market . The increase in meat buyers would increase the demand for cooking oil , a completing color good .

This increase in demand would result in an increase in both the price and quantity of cooking oil soldiii . The effect would be similar to that in ii . Since data processors and ready reckoner monitors are complementary goods , the increase in demand created by the lowered price of computers would also translate to an increase in demand for computer monitors . This results in an increase in price and quantity for computer monitorsQuestion 2Part AUnits Fixed Cost variable Cost Cost make clean Variable Cost Average Fixed Cost0 30 0 30 30 n /a n /a n /a1 30 5...If you necessity to get a abundant essay, order it on our webs! ite: BestEssayCheap.com

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