final 60

1. How might the ability to store coconuts for long periods

of time affect PES?

2. Which is most responsive to changes in income:

demand for cars or demand for milk?

3. Can you give a reason for your answer in (1)?

4.State two other goods that might respond in the same

way as new cars to changes in income.

5. How might income elasticity be of use to businesses

in this developing country? Give two reasons in your

analysis.

6 Who owns and runs the Ugandan National and Water

Sewerage Corporation (NWSC)?

7. What are the objectives of the NWSC?

8. Calculate the percentage change in average income

between 2001 and 2015 for the developing country

Between 2001 and 2015, incomes rose from US$12000 to

US$18000. The percentage increase in income is given by:

US$18000 US$12000 = __________ US$6000

9. Calculate the percentage change in the quantity

demanded for red meat between 2001 and 2015 for the

developing country

10.Calculate the income elasticity of demand for red meat

in the developing country.

= _______