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Category: Microeconomics
Economics practice exam Q1. What is utility? What are the types of utilities?(8marks) Q2. What is the difference between Monopoly and Monopolistic competition?(8marks) Q3. What is the difference between Returns to factors and returns to scale?(6marks) Q4. Explain the four factors of production with ...
Category: Microeconomics
Some goods are bought largely because they have "snob appeal." For example, the residents of Beverly Hills gain prestige by buying expensive items. In fact, they won't buy some items unless they are expensive. The law of demand, which holds that people buy more at lower prices than higher prices, ob...
Editor July 22, 2021 19:52
Explanation In the 'snob effect', people acquire expensive goods to gain prestige. The income of people living in Region B must be high as they can spend money on expensive (View full solution)
Category: Microeconomics
"The price of a bushel of wheat, which was $3.00 last month, is $3.70 today. The demand curve for wheat must have shifted rightward between last month and today." Discuss.
Editor July 22, 2021 19:51
Explanation Demand is not the only factor that will determine the price of good W. The market price for a good is determined by the market price of the demand (View full solution)
Category: Microeconomics
True or false? As the price of oranges rises, the demand for oranges falls, ceteris paribus. Explain your answer.
Editor July 22, 2021 19:50
Explanation Demand refers to the consumer's willingness and the ability to pay for the purchase of varying quantities of a particular good or service at varying prices during a particular (View full solution)
Category: Microeconomics
What is the difference between demand and quantity demanded?
Editor July 22, 2021 19:49
Explanation Both the demand and the quantity demanded for a good are different concepts. The major differences between the two are listed below. Demand represents the different quantities that a (View full solution)
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