Q1. Describe the idea of price elasticity of demand. Explain why does the formula encompass a negative sign?
Q2. Explain why is the elasticity formula, free of units?
Q3. Sketch the demand curves if:
a) ed > 1
b) ed < 1.
Q4. Determine the slope of the demand curve if the demand curve is:
a) Vertical
b) Perfectly horizontal
Q5. Define the term income elasticity and use it to comment on the nature of a variety of goods.
Q6. Describe as what would happen to the demand for kerosene stoves when:
a) Price of LPG cylinders increase.
b) Price of Kerosene oil increases.
Q7. Illustrate the two properties of the demand curve?
Q8. Define the term supply. Explain how is a supply equation specified?
Q9. Describe two reasons as to why the supply curve is rising upward.
Q10. Define the idea of equilibrium with respect to the demand and supply curves.