HOMEWORK THAT I HAVE TO EXPLAIN IN FRONT OF THE CLASS TOMORROW.

PLEASE GIVE ME ANSWERS WITH FULL COMPREHENSIVE EXPLANATION. PLEASE!!!

QUESTION 1

The demand and supply equations for a good (X) are given by Qd= 4000 - 25p and Qs = -2000 + 35P respectively, where P = price.

(I) Draw the demand and supply curves for good X on a graph.

(II) The government imposes a specific sales tax of R20 per unit on good X. Show the resulting effect on the graph and find the new equilibrium price and quantity.

(III) Comment on the tax incidence (on the consumer and producer).

(IV)Calculate the Price Elasticity of Demand when price rises from the original equilibrium at (ii) to the new equilibrium at (iii).

QUESTION 2

"The short-run equilibrium of a perfectly competitive firm is similar to its long-run equilibrium". Do you agree? Explain.

QUESTION 3

Monopolists have adverse effects on the consumer society and should be eliminated". Discuss.

QUESTION 4

Distinguish carefully between economic growth and economic development.