Suppose the generic demand function of hypothetical commodity is given by Where Q* is quantity demand of commodity, Y is income, Px is price of commodity, Py is price

of related good

Given Y= 1500; Px = 3 and Py = 2

a). calculate price elasticity of demand and interpret the result? b). calculate income elasticity and interpret the result?

c). calculate cross-price elasticity and identify the nature of the good?

Suppose Addis Ababa textile factory is facing the following production function with fixed supply of machineries (capital) and variable input (labor).

Table is attached:
Calculate the corresponding values of AP and MP
Draw curves for TP, AP and MP of labor
Identify the three stages of production and show their tabular and graphical justifications.
Indicate the point where the LDMR starts to operate.
The inflexion point
Given Cobb-Douglas production function Q = 50 KL, if a wage rate is 25 birr per labor and the rental capital is 50 birr per capital.
Determine the optimum input combinations of labor and capital for producing 1000 unit of output?
What is the minimum cost of production?
If the output price is 40 birr, calculate the profit/loss of the firm?