Main determinants of elasticity of demand:
1. Availability of substitute
2. Nature of the commodity i.e. luxury, necessity or habit-farming/addictive etc
3. Proportion of income spent on a commodity
4. Durability
5. Possibility of postponed use
6. Number of uses
7. Time – SR and LR
8. Price (initial price level)
Wilfykil answered the question on February 4, 2019 at 13:21
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The demand for a commodity is five units when the price is sh. 1,000 per unit. When price per unit falls to Sh. 600 the...
(Solved)
The demand for a commodity is five units when the price is sh. 1,000 per unit. When price per unit falls to Sh. 600 the demand rises to six units.
Compute the point and arc elasticity of demand
Date posted:
February 4, 2019
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Answers (1)
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Discuss any three practical applications of the concept of elasticity of demand in management and economic
policy decision making
(Solved)
Discuss any three practical applications of the concept of elasticity of demand in management and economic
policy decision making
Date posted:
February 4, 2019
.
Answers (1)
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Use the data in the table below to compute income elasticity of demand through the arc elasticity
method:
(Solved)
Use the data in the table below to compute income elasticity of demand through the arc elasticity
method:
Date posted:
February 4, 2019
.
Answers (1)
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Define the term cross price elasticity of demand and clearly explain its value for substitutes and
complementary commodities
(Solved)
Define the term cross price elasticity of demand and clearly explain its value for substitutes and
complementary commodities
Date posted:
February 4, 2019
.
Answers (1)
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The demand for a commodity is twenty units when the prevailing market price equals eighty
shillings per unit. However, when the price per unit rises to...
(Solved)
The demand for a commodity is twenty units when the prevailing market price equals eighty
shillings per unit. However, when the price per unit rises to one hundred shillings, the quantity
demanded rises to thirty units.
Required:
Calculate both arc and point elasticities of this commodity
Date posted:
February 4, 2019
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Answers (1)
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Explain why elasticity of supply for agricultural commodities is low.
(Solved)
Explain why elasticity of supply for agricultural commodities is low.
Date posted:
February 4, 2019
.
Answers (1)
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Define elasticity of supply and briefly explain any five factors that influence the elasticity of supply.
(Solved)
Define elasticity of supply and briefly explain any five factors that influence the elasticity of supply.
Date posted:
February 4, 2019
.
Answers (1)
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Discuss the importance of price elasticity of demand and cross elasticity of demand in management and economic policy decision-making.
(Solved)
Discuss the importance of price elasticity of demand and cross elasticity of demand in management and economic policy decision-making.
Date posted:
February 4, 2019
.
Answers (1)
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Briefly discuss the factors which affect the own price elasticity of demand
(Solved)
Briefly discuss the factors which affect the own price elasticity of demand
Date posted:
February 4, 2019
.
Answers (1)
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What are the major consequences of each of the price control measures?
(Solved)
What are the major consequences of each of the price control measures?
Date posted:
February 4, 2019
.
Answers (1)
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With the aid of well-labeled diagrams, distinguish between price floors and
price ceilings.
(Solved)
With the aid of well-labeled diagrams, distinguish between price floors and
price ceilings.
Date posted:
February 4, 2019
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Answers (1)
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Explain the circumstances under which price control is considered necessary.
(Solved)
Explain the circumstances under which price control is considered necessary.
Date posted:
February 4, 2019
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Answers (1)
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Give the meaning of the term "Price Control"
(Solved)
Give the meaning of the term "Price Control"
Date posted:
February 4, 2019
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Answers (1)
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Using the following demand and supply functions of a commodity x,
Qd = 100 - 2P
Qs = 40 + 4P
use diagrams to illustrate and explain the...
(Solved)
Using the following demand and supply functions of a commodity x,
Qd = 100 - 2P
Qs = 40 + 4P
use diagrams to illustrate and explain the effects on the values from:
1. A fall in price of x's substitute
2. A simultaneous increase in input prices and a rise in the consumer's income
Ceteris paribus.
Date posted:
February 4, 2019
.
Answers (1)
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Using the following demand and supply functions of a commodity x, compute the equilibrium price and
quantity.
Qd = 100 - 2P
Qs = 40 + 4P
(Solved)
Using the following demand and supply functions of a commodity x, compute the equilibrium price and
quantity.
Qd = 100 - 2P
Qs = 40 + 4P
Date posted:
February 4, 2019
.
Answers (1)
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Write short notes on Market Equilibrium.
(Solved)
Write short notes on Market Equilibrium.
Date posted:
February 4, 2019
.
Answers (1)
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The table below shows the demand and supply schedules for a product.
Required:
Plot the demand and supply curves and determine the equilibrium price and quantity
(Solved)
The table below shows the demand and supply schedules for a product.
Required:
Plot the demand and supply curves and determine the equilibrium price and quantity
Date posted:
February 4, 2019
.
Answers (1)
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State and briefly explain any four main factors that may cause a fall in the supply of a good in the
market.
(Solved)
State and briefly explain any four main factors that may cause a fall in the supply of a good in the
market.
Date posted:
February 4, 2019
.
Answers (1)
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Clearly explain the distinction between supply, demand and equilibrium price.
(Solved)
Clearly explain the distinction between supply, demand and equilibrium price.
Date posted:
February 4, 2019
.
Answers (1)
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What factors limit consumer sovereignty?
(Solved)
What factors limit consumer sovereignty?
Date posted:
February 4, 2019
.
Answers (1)