1.1 Critically compare the price elasticity of demand and price elasticity of supply. (10 marks) 1.2...

 

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1.1 Critically compare the price elasticity of demand and price elasticity of supply. (10 marks) 1.2 Explain with aid of an example the "the law of Demand as well as the law of Supply" (10 marks) Question 2 The market for a brand of black jeans is in equilibrium, explain with the aid of a separate diagram in each case, the effect each of the following is mostly likely to have on the equilibrium position. 2.1 Due to the economic downturn, there is a reduction in the real income of consumers (6 Marks) 2.2 A fall in a price of cotton, a key input in the production of black jeans. (6 Marks) 2.3 The black jeans have been recently endorsed by a popular Namibian football star Deon Hotto. (6 Marks) 2.4 Advances in technology have reduced the production costs for black jeans (6 Marks) Question 3 Select any business entity of your choice and critically identify and analyze with examples how the Macroeconomic environment factors impact that particular business operations. (16 Marks) 1.1 Critically compare the price elasticity of demand and price elasticity of supply. (10 marks) 1.2 Explain with aid of an example the "the law of Demand as well as the law of Supply" (10 marks) Question 2 The market for a brand of black jeans is in equilibrium, explain with the aid of a separate diagram in each case, the effect each of the following is mostly likely to have on the equilibrium position. 2.1 Due to the economic downturn, there is a reduction in the real income of consumers (6 Marks) 2.2 A fall in a price of cotton, a key input in the production of black jeans. (6 Marks) 2.3 The black jeans have been recently endorsed by a popular Namibian football star Deon Hotto. (6 Marks) 2.4 Advances in technology have reduced the production costs for black jeans (6 Marks) Question 3 Select any business entity of your choice and critically identify and analyze with examples how the Macroeconomic environment factors impact that particular business operations. (16 Marks)

Answer rating: 100% (QA)

1 Price elasticity of demand is the sensitivity of quantity demanded of a goods to a change in the price of such goods It is calculated as percentage change in quantity demanded divided by percentage ... View the full answer