Theories of demand and supply questions | form five Economics

Briefly analyze five factors of elasticity of supply.

Outline the non-price factors that may affect supply.

Study the table below and answer the questions that follow:

Demand Schedule for maize

1. Graphically portray the demand schedule for maize above.
2. Using the graph, explain why the law of demand is sometimes called the law of downward-sloping demand.

Given the following table

Where

P_x=Price of commodity X.

D_x=Quantity demanded for commodity X.

D_B=Quantity demanded for commodity B.

Y=Income level of a consumer.

From the above table, answer the following questions:

1. Calculate the following types of elasticity of demand in the first points only in each case.

1. Income elasticity of demand of commodity B
2. Price eleasticity of demand of commodity X
3. Cross elasticity of demand of commodity X to commodity B.

2. Explain the type of demand relationship between commodity X and commodity B.

Why is short run price elasticity of supply less than long run price elasticity of supply?.

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

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.

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

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

Precisely elaborate the term price elasticity of demand.

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.