Answer;
A
Explanation:
two types of industries are made mention of in this question.
1)Local Fledgling Industries
2)Export Dependent Industries,who are being forced to buy products from local industries now.
Since the Government has placed a ban on the importation of the products that are being made by the local fledgling industries. The implication of this is that:
1. Buyers of those import products will experience a rise in the Cost of those products as the competition faced by the Fledging industries decreases.
2. Competing becomes difficult for Export dependent industries. This is because of inflation. They now have to buy the same product at an inflated cost, thereby reducing profits.
Answer: The profit margin is 22.35 %
Explanation: The formula for profit margin is net profit/ income ÷ net sales.
As such, the profit margin is (131000 ÷ 586000) x 100 = 0.2235 * 100 = 22.35 %
Answer: (B) Civil society
Explanation:
The civil society is one of the type of organization in which the various types of collective actions are taking place in order to share the common values and interests.
It basically enhance the services and the used in the decision making process based on the public and the economical rights.
According to the given question, the civil society is one of the part of citizen campaigned that is against sanction of the new factory that start building in the residence area.
Therefore, Option (B) is correct answer.
Answer:
A. Deadweight loss = 125 units.
B. Deadweight loss = 25 units.
Explanation:
In a free market and completely efficient economy, the consumer surplus equals the producer surplus. Both benefits of free trade. When consumers o producers have a minor surplus, necessarily implies a loss on eficiency, usually caused by government regulations like taxes or price ceilings.
The amount of welfare lost is measure by the difference between consumer and producer surplus.
In the first case:
|Consumer surplus - producer surplus| = 25 units
|250- 125| = 125 units
And in the second case:
|180- 155| = 25 units
Answer:
The price elasticity of demand is 1.14.
The price is Elastic.
Elasticity is more than one so total revenue will fall.
Explanation:
Given the initial price of good x = $12
Final price of good x = $12.90
% change in price = [(12.90 - 12) / 12] x 100 = 7.5 %
Initial quantity = 5000
Final quantity = 4600
% change in quantity = [(4600 - 5000)/5000] x 100 = -8%
Elasticity = % change in quantity / % change in price
Elasticity = 8% / 7%
Elasticity = 1.14
The price elasticity of demand is 1.14.
The price is Elastic.
Since elasticity is more than one so total revenue will fall.
