a) i)Explain difference between; ii,Microeconomics and macroeconomics  iiiPositive and Normative economics     b) Given the following demand and supply functions as;   i)Find the price elasticity of demand and price elasticity of supply at the equilibrium point.  ii)Based on the values obtained from Price elasticity of supply in (i) above, what advice would you give to the producer if he is to increase revenue?  iv)Using illustrations, distinguish between Minimum and maximum price   v)Assuming the government, set the price at 45shs, determine whether its minimum or maximum price, and state the surplus or deficit

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter5: Markets In Motion And Price Controls
Section: Chapter Questions
Problem 10P
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a) i)Explain difference between;

ii,Microeconomics and macroeconomics 

iiiPositive and Normative economics    

b) Given the following demand and supply functions as;

 

i)Find the price elasticity of demand and price elasticity of supply at the equilibrium point. 

ii)Based on the values obtained from Price elasticity of supply in (i) above, what advice would you give to the producer if he is to increase revenue? 

iv)Using illustrations, distinguish between Minimum and maximum price  

v)Assuming the government, set the price at 45shs, determine whether its minimum or maximum price, and state the surplus or deficit                             

 

 

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