This will test students understandig on the general concept o demand and suply examined as well as market equilibrium and the algebraic inerpretation of market equlibrium.
1. Define the folowing terms:
(a) Demand
(b) Supply
(c) Market equilibrium
(6mks)
2.Explain the slope of the demand curve differs from that of the supply curve. (5 mks)
3.
(i) List three determinants that can cause the supply curve to the left. (3mks)
(ii) Illutrate and describe the effect of one of the determinants listed in 3(i) (8 mks)
4. Explain the gaph below.
(5 mks)
5. If the demand and supply curve for computers are:
D = 100 - 6P, S = 28 + 3P
where P is the price of computers, what is the quantity of computers bought and sold at equilibrium. Explain your answer. (6mks)
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