Outline the characteristics of indifference curve (6 marks)
b) Given the following Q=4050-360P, Q=2500+320P ,Identify the demand and supply equation and find the equilibrium price and quantity(6 marks)
c) The demand of a commodity is 10 units when the price is $2500 per unit. When the price falls to 1000 the demand rises to 15 units. Compute price elasticity of demand
(8 marks)

Answer rating: 100% (QA)

The detailed answer for the above question is provided below a Characteristics of Indifference Curves Convex shape Indifference curves are usually dow... View the full answer