ECTION A $($Attempt all Questions$)$

$($i$)$ What is managerial economics?

$($ii$)$ Differentiate between microeconomics and macroeconomics.

$($iii$)$ The areas of business issues to which economic theories can be directly applied is divided into two. Namely $q,$ and

$($iv$)$ Managerial economics can bridge the gap between economic theory and real work $f$ business decisions through five steps. List the steps

$($v$)$ Managerial economics concerns with the application of economic principles to the problems of the firm but the traditional economics deals with the body of principles itself. True or False

$($vi$)$ The horizontal summation of the alternative units of the commodity demanded by individual consumers at various prices over a specific period of time is known as $.....$

$($vii$)$ If at $$8\mathrm{.}00$ per kilo, $20$ kilos were demanded and when the price fell to $N6\mathrm{.}00$ per kilo, $30$ kilos were demanded. What is the elasticity of the demand?

$($viii$)$ The demand and supply function of a commodity are given as follows: Quantity demanded $(Q_d)=20-2P$; Quantity supplied $(Q_s)=6P-12.$ Where $P=$ price in Nairz. Determine the equilibrium price and quantity bought and sold at that price.

$($ix$)$ If the demand for the product of your company is inelastic, what advise will you give as regards the fixing of price?

$-($x$)$ What is price floor? Illustrate and state the consequences.

$($xi$)$ What is price ceiling? Illustrate and state the consequences.

$($xii$)$ A change in demand is the same as a change in quantity demanded. True or False

$($xiii$)$ Although demand is a multivariate concept, the traditional theory of demand concentrates on the four factors as the main determinants of demand. List them.

$($xiv$)$ Given a market demand curve $Q=240-4P$ and a supply curve $Q=8P,$ Calculate the equilibrium price and quantity respectively.

$($xv$)$ If the quantity demanded of a commodity increases from $40$ to $60$ when there is a decrease in price from $$15$ to $$44.$ Calculate the elasticity of demand and identify the type of elasticity.

$($xvi$)$ What is production function?

$($xvii$)$ When should rational firm produce under Law of Diminishing Return?

$($xviii$)$ State three assumptions of Law of Returns to Seale under long$-$run production function.

$(35$ Marks$)$