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Problem:
a. With the help of diagrams, describe how the price and quantity of potatoes will change under the different circumstances:
(i) A severe drought affecting its production (ii) Consumers expect a future rise in prices of potatoes; and (iii) A new production technique is adopted to increase efficiency.
b. Along the demand curve, price elasticity of demand is constant. Do you agree?
c. Describe the income and cross elasticity of demand.
During the 1990s, technological advance reduced the cost of computer chips. Explain, with the use of supply and demand diagrams, how the following markets are affected in terms of
Assignments
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using the indifference curve approach explain why the demand curve slope downwards from left to right...... is there any exceptions?
explain the nature and scope of economics.
1- Explain how a policy mix (like the one used in 1990s) could help reduced to eliminate the budget deficit without having an adverse effect on the output. Illustrate your answer
1. Explain how absolute advantage and comparative advantage differ? 2. Give an example in which a person has an absolute advantage in doing some thing but another pers
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