Economics Past Questions and Answers

A dealer in deep freezers increased the price of his product from $450 to $500 and sales dropped from 800 units to 600 units a week.
Use the information above to answer the questions that follow.
(a)(i) Calculate the price elasticity of demand
(ii) What type of elasticity is it? Explain your answer
(b)Calculate the (i) total revenue of the company before and after price increase; (ii) change in total revenue.
(c) What is the effect of the increase in price on the total revenue?
(d) State two factors influencing price elasticity of demand.

The market for apples is represented by the following demand and supply functions:
Qd = 30 - p;
Qs = 15 + 2p.
(a) Prepare a demand and supply schedule for the market, given the prices $2.00, $4.00 and $7.00.
(b) (i) Determine the equilibrium price and equilibrium quantity of apples in the market.
(ii) If the price of apple is fixed at $3.00, what will be the excess demand or excess supply.
(c) Suppose the demand function changed to Qd = 40 - p. Using the prices in (a) above:
(i) prepare a new demand schedule;
(ii) does it represent an increase or a decrease in demand?
(iii) explain your answer in (c) (ii) above.

(a) Define land as a factor of production.
(b) State three features of land.
(c) Explain four ways in which land contributes to the economic development of your country

(a) What is subsistence farming?
(b) Distinguish between crop farming and livestock farming with specific examples.
(c) Identify four measures that the government of your country can adopt to boost agricultural production.

(a) State two features each of:
(i) perfect competition; (ii)monopolistic competition.
(b) What does it mean for a firm to be a : (i) price taker; (ii)price maker?
(c) Explain the following sources of monopoly power: (i) acts of parliament; (ii) copyright; (iii) natural monopoly; (iv) cartel