examines problems with two or more solutions by establishing criteria with which to compare the alternatives
Answer:
$450
Explanation:
Data given in the question
Number of the units produced is 50 units
Marginal revenue is $6
Now the output increase by 50%
So, the total revenue is
= Number of units produced × marginal revenue + increased output percentage × (Number of units produced × marginal revenue)
= 50 units × $6 + 50% of $300
= $300 + $150
= $450
We simply compute by applying the above information
Answer: A
Explanation:
A complementary good is a product that is used together with another product. Without its complement, such a good will have little value. When there is increase in the price of a particular product, the demand of its complement reduces because consumers may not be able to use the complement on its own.
Complements have negative cross elasticity of demand i.e there is increase in the demand for a product when the price of its complement reduces. If bicycles and gasoline are complements, an increase in tax on gasoline will have a negative effect on the demand for bicycle. Due to the price increase of gasoline, less people will demand for bicycle. The initial change that will occur as a result of this is that as there is a price increase for gasoline, there will be a leftward shift in the demand for bicycle. This implies that less bicycle will be demanded for.
Based on the fact that the increase in investment led to such an increase in equilibrium expenditure, then the expenditure multiplier can be found to be E. $40 billion ÷ $10 billion = 4.
<h3>How to find the expenditure multiplier?</h3>
The expenditure multiplier shows how much expenditure will increase by, as a result of an increase in investment or other factors that bring about a cash injection into the economy.
The expenditure multiplier in this case, can be found by the formula:
= Equilibrium expenditure / Increase in investment
Solving for the Expenditure multiplier gives:
= 40 billion / 10 billion
= 4
Options for this question include:
- A. $10 billion $40 billion = - $30 billion.
- B. $40 billion $10 billion = $30 billion.
- C. $10 billion x $40 billion = $400 billion.
- D. $10 billion ÷ $40 billion = 0.25.
- E. $40 billion ÷ $10 billion = 4
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Answer:
FALSE
Explanation:
Microeconomics refers to the branch of economics which examines the actions of persons and businesses in making choices about limited resource distribution and the relationships between these entities and industries.
Although microeconomics concentrates on companies and people, macroeconomics focuses on overall economic exercise, talking about issues of development, interest rates, and joblessness, and governmental policies on such concerns.
Thus, from the above we can conclude that the given statement is false.
