Theories of demand and supply questions | form five Economics

What is kinked demand theory? Explain why the marginal revenue of a firm in oligopoly has different slopes.

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UNSOLVED

Briefly explain the following statements:

1. Demand for food in general is inelastic but demand for a specific food is elastic.
2. The supply of land for the economy as a whole is fixed but the supply of land for a particular use is not fixed.
3. In real sense all commodities are in competitive demand.
4. Demand for any factor of production is said to be derived.

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UNSOLVED

With the help of a well labelled graphs show the nature of cross elasticity for

1. Substitute goods
2. Complementary goods
3. Independent goods.

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UNSOLVED

Precisely elaborate the term price elasticity of demand.

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Given the following demand schedule:

1. Draw graph of the schedule , price of goods N on the X-axis and quantity of goods N bought on the Y-axis.
2. Calculate price elasticity of demand when the price of N falls from sh.3000 to sh. 2000 per kg.
3. Name two commodities which may show such behaviour. Give reasons for your answer.

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UNSOLVED