INDIVIDUAL ASSIGNENT

SUBMISSION DATE-14 APRIL 2023 (13:00PM)

Question one.
i. Which theory is generally included under microeconomics?
a) Price theory.
b) Income theory.
c) Employment theory.
d) None of the above.
ii. What is meant by the term final goods and service?
a) The same as the term intermediate goods and services.
b) The same as the term consumer goods and services.
c) All goods and services except those traded second hand.
d) Goods and services which are finished as far as the economy is
concerned.
iii. Which of the following statements is true?
a) Microeconomics is concerned chiefly with the economy as a whole.
b) Macroeconomics is concerned chiefly with the individual markets.
c) Governments have no influence over market prices.
d) When economics study the price in a market, their chief aim are to
understand why the price is what it is and why it may change.
Question Two.
A. Briefly discuss the main economic problems.
B. Explain economics as a science in the introduction to economics.
C. Economics is a discipline that is divided into two broad branches, which
are they? With examples explain them.

Question Three.
Why do demand curves generally slope downward?
Question Four.
Explain the difference between a change in quantity demanded and a change in
demand.
Question Five.
With Graphs, explain five (5) types of Price Elasticity of Demand.

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Learning is never done without errors and defeat.
Question Six.
Suppose that Benn and Kelvin are the only consumers of Heineken in a particular
market. The following table shows their annual demand schedules:
Price (Dollars per Heineken) Benn’s Quantity Kelvin’s Quantity
Demanded (Heineken) Demanded (Heineken)
3 18 36
5 12 26
7 8 18
9 4 10
11 0 4
Find the Market Demand Schedule.
Question Seven.
a) State the law of Equilibrium.
b) The demand and supply functions of a good are given by
Qd = 120 – 8P
Qs = -6+4P
Where P, Qd and Qs denote price, quantity demanded and quantity supplied
respectively.
1. Find the inverse demand and supply function.
2. Find the equilibrium price and quantity.
3. What is the equilibrium P and Q if the per unit tax is 4.5

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Learning is never done without errors and defeat.