Kindly give detailed explanations

2) Consider the following demand and supply functions: Qi =24-4P, demand Q;=-6+2E,_,P, supply and expectations generator E, _P. = P, a) Calculate the long run price and quantity in this market. Justify your answer. b) Is this system a stable or unstable Cobweb model? Justify your answer. c) Beginning at P, =4 and Q, =8, calculate three years of prices and quantities in this market. Suppose instead that the demand and supply functions are: Qi =24-2P, demand Q;=-6+4E,_P, supply d) Repeat questions a) through c) where in c) part you begin with P, =4 and Q =16.Suppose that a fishery is characterized by the following relationship between total fish stock and annual growth (ignore the third column for now): Stock (thousand tons Annual Growth (tons) Number of Boat Trips biomass) Required to Catch Annual Growth 10 0 20 800 2,300 30 1,600 2,200 40 2,300 2, 100 50 2,800 2,000 60 3,100 1.600 70 3,200 1,300 80 3,000 1,000 90 2,700 800 100 2,300 600 p 509 110 1.800 400 120 1,200 200 130 500 100 140 0 a) First, construct a graph showing the relationship between stock and growth, similar to FigureQuestion 2 (6 Marks) Robert has been saving money for a long time and finally he decides to place his saving into the bank account. Suppose from his saving Robert has deposited $12000 in Bank of the South Pacific which has the required reserve ratio of 10%. Using the information given above, calculate the following: a) Money multiplier. (2 Marks) b) Required reserves. (2 Marks) c) Excess reserves, assuming the actual reserve for the bank is $2800. (2 Marks) Question 3 (6 Marks) "Assume that the Fijian government removes all restrictions in relation to immigration which attracts a lot of people from different countries to settle in Fiji" Using the labor demand and supply curve explain what will happen to wage rate, employment and potential GDP in Fiji Question 4 (6 Marks) "The foreign exchange rate is highly affected by any change in the demand for the exported goods and services." Using foreign exchange demand and supply curve, explain the effect of decrease in world demand for domestic export on the foreign exchange market. Question 5 (6 Marks) "Open market operation refers to a central bank's buying and selling of government securities in the open market in order to expand or contract the amount of money in the banking system." Using AD/AS model, explain and show the process of an open market sales of government securities by the central bank on price level and output in the economy. Question 6 (6 Marks) "Monetary policy is a macroeconomic policy laid by the central bank which involves the management of money supply and interest rate to achieve the macroeconomic objectives." Using money supply and demand curve, show the effect of a contractionary monetary policy on the quantity of money and the price level. ECN5015em Semester 2, 2019 Page 7 of 8*7. The Saga Food Company produces one type of frozen dinner sold directly to consumers and to restaurants. The demand and marginal revenue functions for Saga's frozen dinner by consumers (market 1) and restaurants (market 2) are, respectively, 21 = 160 -10P or P, = 16-0.10, and MR, = 16-0.20, 22 =200 -20P, or P, = 10 -0.050, and MR, = 10-0.102 Saga's total cost function is TC = 120 + 40 Draw a figure showing (a) the demand, marginal revenue, and marginal cost curves faced by the firm; (b) the best level of output of the firm and how the firm should distribute sales in each market in order to maximize total profits with third-degree price discrimination; (c) the price and total revenue of the firm in each market with third-degree price discrimination; (d) the profit per unit and in total with third-degree price discrimination; and (e) the output, price, total revenue, and profit per unit and in total in the absence of price discrimination