about net factor income

1. Discuss the exceptions of the law of demand? 2. Given the following demand function; (4.5 mark) Qx100-0.25Px+0.5Y-5Py, and Qx5, Px 3 birr, Y = 20 birr and Py = 4birr Where Qx Quantity of good X, Px Price of good Y, Y the income of the individual and Py the price of good Y. Calculate, a. The price elasticity of demand of good X and interpret your result. b. The income elasticity of demand of good X and interpret your result. c. The cross price elasticity of good X for good Y and interpret your result. 3. A firm operates in a perfectly competitive market. The market price of its product is 4 birr and the total cost function is given by TC 1/30-50+200+50, where TC is the total cost and Q is the level of output. (4 mark) a. What level of output should the firm produce to maximize its profit? b. Determine the level of profit at equilibrium. c. What minimum price is required by the firm to stay in the market? 4. Consider an economy that produces and consumes Bread and Automobile. Data for two different years 2010 and 2011 is given in the following table. Year 2010 2011 Price of automobiles Year 2010:- $5,000 Year 2011:- $6000 Price of a loaf of breads Year2010:- $10 Year 2011:-$20 Number of automobiles produced Year2010 :-1000 year2011:-120 Number of a loaf of breads produced year2010:-500,000 year2011:-400,000 Using the year 2010 as a base year, A. Calculate the nominal and real GDP of 2011. B. Find the value of GDP Deflator for the year 2011 and interpret C. Calculate the inflation rate in 2011. 5. A firm has a short run total cost function C (Q) = 90°+441. At what quantity of output is short run average cost minimized? 6. Discuss the macroeconomic problems and its instrument to solve them? Economics questions Give best answer for this question