Assignment Questions

1.Explain the difference between "inelastic demand" and "unitary elasticity of demand"

2.State three reasons why the demand curve slopes downwards

3.Explain five factors that demand the price elasticity of supply of a commodity

4.Enumerate six factors that could lead to a rightward shift of the supply curve

5.Explain the term "price control " as used in economy

6.Highlight eight reasons for price control in an economy

7.A)explain the term elasticity of supply

b) summarize three applications of elasticity of supply in an economic decision making

8.Differentiate between partial equilibrium analysis and general equilibrium analysis as used in economics

9.Differentiate between giffen good and 'inferior good'

10.With reference to demand and supply analysis identify six effects of fixingthe maximum price of a commodity below the equilibrium price

11.Outline six assumptions underlying the derivation of the demand curve

12.Outline five determinants of the elasticity of supply

13.Describe six factors that might cause a shift of the supply curve in an economy

14.Summarize five exceptions to the law of demand

15.Distinguish between 'own price elasticity of demand ' and 'cross price elasticity of demand'

16.Outline four factors that would lead to a rightward shift in the demand curve

17.Outline four factors that determine the price elasticity of demand of a commodity

18.Distinguish between a 'price ceiling ' and a 'price flour'

19.Define the term 'consumer surplus'

20.Highlight three exceptions to the law of diminishing marginal utility

21.Outline four limitations of the cardinal approach to the theory of consumer behavior