Explanation

(a)

Price elasticity of suppy = \(\frac{\Delta Q}{\Delta P}\) x \(\frac{P}{Q}\)

P = $20.00

Q = 500 gallons

\Delta Q = 500 - 400 = 100 gallons

\Delta P = $20.00 - $18.00 = $2.00

Es = \(\frac{100}{2}\) x \(\frac{20}{500}\)

Es = 2

(b) The supply is elastic. This is because the coefficient of price elasticity of supply is greater than one (Es > 1).

(c)(i)

(d)(i) Change in the price of related products.

(ii) Cost of production.

(iii) Change in technology.

(iv) Government policy e.g. tax or subsidy

(v) Expectation of producers.

(vi) Number of producers.

(viii) Natural disaster

Correct Answer: C. Increase the consumption of garri

Correct Answer: A. Rank

Explanation

The ordinalist approach explains that an individual can rank boundless of goods in order of preference with regard to the satisfaction they give him or her. Ordinalist approach is explained by means of different curves and budget lines.

Correct Answer: C. fixed interest

Explanation

A debenture pays a regular interest rate or coupon rate return to investors. Payment of interest is made to the debenture holder at a specified rate and at clearly defined intervals

Correct Answer: D. Language barrier

Explanation

PROBLEMS THE ECONOMIC COMMUNITY OF WEST AFRICAN STATES - Language barrier - Widespread Poverty - Human Rights Abuses - Financial problems - Strong External Influence - Single currency

Correct Answer: B. be able to even-out development

Explanation

Industries are sometimes located in areas which are not profitable so as to even-out development. This is a government policy that aims to reduce regional disparities in economic development. By locating industries in less developed areas, the government hopes to create jobs and boost economic growth in these areas. This can help to reduce poverty and improve the standard of living in these areas.

Correct Answer: D. produce one main commodity

Correct Answer: D. maximize profits

Correct Answer: B) 6X and 25Y

Explanation

This question is about a consumer who has ?100 of income to spend on two goods, X and Y. The price of good X is ?10, and the price of good Y is ?2. The question asks which of the following combinations of X and Y is not affordable with ?100.

Option A is 10X and 0Y. This means the consumer spends all their ?100 on good X and none on good Y. Since the price of X is ?10, the consumer can buy 10 units of X with ?100. This combination is affordable.

Option B is 6X and 25Y. This means the consumer spends ?60 on good X and ?50 on good Y. The cost of 6 units of X is ?60 (6 x ?10), and the cost of 25 units of Y is ?50 (25 x ?2). The total cost of this combination is ?110, which is more than the ?100 income the consumer has. Therefore, this combination is not affordable, and it is the correct answer.

Option C is 4X and 20Y. This means the consumer spends ?40 on good X and ?40 on good Y. The cost of 4 units of X is ?40 (4 x ?10), and the cost of 20 units of Y is ?40 (20 x ?2). The total cost of this combination is ?80, which is less than the ?100 income the consumer has. Therefore, this combination is affordable.

Option D is 5X and 25Y. This means the consumer spends ?50 on good X and ?50 on good Y. The cost of 5 units of X is ?50 (5 x ?10), and the cost of 25 units of Y is ?50 (25 x ?2). The total cost of this combination is ?100, which is equal to the ?100 income the consumer has. Therefore, this combination is also affordable.

In summary, the correct answer is Option B because the total cost of 6X and 25Y is more than the ?100 income the consumer has. This question tests the student's understanding of the concept of affordability based on the prices of goods and the consumer's income.

Correct Answer: D. agricultural sector