Explanation

(a)(i) Elasticity of demand is defined as the degree of responsiveness of quantity demanded of a commodity to changes in any of its determinants such as the price of the commodity, income of the buyers and prices of its substitutes.

(ii) Price elasticity of demand is defined as the degree of responsiveness of quantity demanded of a commodity to changes in the price of the commodity.

(b) The determinants are:

(i)Nature of the commodity: That is, whether the commodity , is a necessity or luxury. Necessary goods have inelastic demand while luxury goods have elastic demand. (ii) Substitutes: Commodities having substitutes have more elastic demand while those without substitutes have inelastic demand.

(iii) Number of uses: Commodities with variety of uses have elastic demand.

(iv)Habits: Goods consumed as habits have inelastic demand.

(v)Consumer's income: Where the percentages of customer's income spent on a commodity is large, demand tends to be price elastic and vice versa.

(vi)The time factor: The longer it takes to find a substitute, the more inelastic is demand and vice versa.

(vii) Level of prices: If high, demand is elastic but if low, demand is inelastic.

(viii) The breadth of the definition of a commodity. Where a commodity is broadly defined, demand tends to be price inelastic.

(c)(i) Fairly elastic demand Fairly elastic demand

Correct Answer: B. The marginal utility is a always zero whenever the total utility reaches the maximum

Explanation

Marginal utility is the slope of the total utility curse. At maximum point slope of total utility is equal to zero. Therefore the marginal utility is also zero when total utility reaches its maximum level. Total utility is the sum of utility which consumer gains from consumption of certain goods and services.

Correct Answer: C. demand for and supply of foreign goods

Correct Answer: C) product approach

Explanation

This Economics question is asking about the approach that economists use to compute national output, which is the total value of all goods and services produced in a country during a year. To calculate this, economists add up all the final goods and revenues produced in the country during the year, which are calculated at market price.

The question provides four options, and the correct answer is Option C: product approach. This approach involves adding up the total value of all final goods and services produced in a country during a year, regardless of who produced them. This includes goods that are sold to consumers, businesses, and the government.

Option A, value added approach, involves adding up the value added by each producer in the production process. In other words, economists look at the difference between the value of the inputs used in production and the value of the final product.

Option B, expenditure approach, involves adding up the total amount spent on goods and services in the economy during a year. This includes spending by consumers, businesses, and the government.

Option D, national savings approach, focuses on the amount of savings that households, businesses, and the government have in the economy during a year.

It's important to note that each of these approaches can provide valuable insights into the health of an economy, and economists often use a combination of them to get a more complete picture of economic activity. However, in the context of this question, the correct answer is the product approach.

Correct Answer: C. can produce more of any good with fewer resources

Correct Answer: D. perfect competition

Correct Answer: D. N320.00

Correct Answer: A. competitive demand

Correct Answer: D. resource allocation

Explanation

The fundamental economic problem is the issue of scarcity and how best to produce and distribute these scare resources. Scarcity means there is a finite supply of goods and raw materials. Finite resources means they are limited and can run out

Correct Answer: A. 6 units