Theories of demand and supply questions | form five Economics

Outline four factors affecting supply.

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UNSOLVED

1. Describe five factors, other than price, which affect the supply of a commodity to change.
2. Analyse five importance of the concept of price elasticity of demand in the economy.

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UNSOLVED

1. The following table shows the production of commodity A, B, C and D. Study it and answer the questions that follow:

1. Calculate income elasticity of demand for each commodity
2. Give classification of each type of commodity

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Analyse four practical applications of elasticity of supply.

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The manager of a hotel used to sell 100 units of commodity X per day when price was 400/= per unit. When price of the commodity X rises from 400/= to 800/= per unit , the sales for commodity Y increases to 200 units per day.

1. Calculate cross elasticity of demand.
2. Interpret your answer in (i).

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UNSOLVED