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this is business economics subject.Hope the tutor can help me to answer this questions. thaank you Business Economics (QEM5023) Short Answer Question 2: 10 Marks

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this is business economics subject.Hope the tutor can help me to answer this questions. thaank you

image text in transcribed
Business Economics (QEM5023) Short Answer Question 2: 10 Marks Answer all the questions: Question 1: When the price of rice was "low," consumers in the Thailand spent a total of $8 million annually on its consumption. When the price of food reduced to 50%, consumer expenditures actually DECREASED to $6 billion annually. What does these changes indicate: the demand for food is elastic or the demand for food is inelastic? Question 2: The government decides to provide a particular item for everyone who wants it at less price than market price and passes a law making it will be illegal to buy or sell the good at current high price. This good is highly desirable for some of the population. What would happen in this market if the law were removed? (hints: price ceiling or price floor) Question 3: How to measure productivity through the marginal returns of inputs? Explain the short run and long run production strategy? Question 4: What is the Marginal Rate of Satisfaction? Explain how consumer reach the equilibrium level where MRTS = Px/Py? What will happen when diseconomies of scale exist? Question 5: How to estimate Marginal cost of production? Explain how producers can minimize the costs through input substitutions in the short run

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