(a) What is price elasticity of
demand?
(b) The following table shows the
demand and supply of Feyinkogbon, a consumer. Use the table to answer the
questions that follow:
Price (N)
|
Quantity Demand
|
Quantity supply
|
550
|
4,750
|
5,750
|
500
|
5,000
|
5,000
|
450
|
5,250
|
42,500
|
i. Calculate
the elasticity of demand when price was N550.
ii. State
the nature of elasticity of demand in (i) above.
iii. Calculate
the elasticity of supply when price fell from N500 to N450.
iv. State
whether the supply in (iii) above is elastic or inelastic.
ASSIGNMENT 4
(a) The demand and supply functions of Aiyele Nigeria Limited are given
as:
Quantity Demand (QD) = 20
– 3p
Quantity Supply (QS) = 6p
– 16
Where p= price in naira.
i.
Compute the equilibrium price and quantity respectively.
ii.
If price falls to N2, determine the excess demand,
iii.
If price rises to N6, what is the excess supply?
(b) What is cross elasticity
of demand?
NOTICE: DO IT ON SEPARATE SHEET
OF PAPER AND TO BE SUBMITTED ON MONDAY FEBRUARY 11, 2019 ON OR BEFORE 8A.M TO
YOUR CLASS PRESIDENT.
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