The market for Tomatoes has the following demand and supply schedules: PRICE (kwacha) QUANTITY… 1 answer below »


The chaffer for Tomatoes has the aftercited ask-for and minister catalogues: PRICE (kwacha) QUANTITY DEMANDED QUANTITY SUPPIED 4 135 26 5 104 53 6 81 81 7 68 98 8 53 110 9 39 121 a) Graph the ask-for and minister curves. What is the makeweight worth and muchness in this chaffer? (5 Marks) b) If the explicit worth in this chaffer were over the makeweight worth, what would push the chaffer internal the makeweight? (2.5 Marks) c) If the explicit worth in this chaffer were beneath the makeweight worth, what would push the chaffer internal the makeweight? (2.5 Marks)QUESTION THREE Suppose that your ask-for catalogue for conglomerate discs is as follows: PRICE (K) QUANTITY DEMANDED (income=K10,000) QUANTITY DEMANDED (income=K12,000) 8 40 50 10 32 45 12 24 30 14 16 20 16 8 12 a. Use the midpoint process to compute your worth elasticity of ask-for as the worth of conglomerate discs increases from K8 to K10 if (i) your proceeds is K10,000, and (ii) your proceeds is K12,000. (5 marks) b. Compute your proceeds elasticity of ask-for as your proceeds increases from K10,000 to K12,000 if (i) the worth is K12, and (ii) the worth is K16. (5 marks) QUESTION FOUR Suppose that interest travelers and vacationers enjoy the aftercited ask-for for airline tickets from Zambia to Ethiopia: PRICE (K) QUANTITY DEMANDED (Business travelers) QUANTITY DEMANDED (vacationers) 150 2,100 1,000 200 2,000 800250 1,900 600 300 1,800 400 a) As the worth of tickets rises from $200 to $250, what is the worth elasticity of ask-for for (i) interest travelers and (ii) vacationers? (Use the midpoint process in your calculations.) (10 marks) b) Why force vacationers enjoy a irrelative elasticity than interest travelers? (2 marks