Question 2
- Calculate the percentage change in:
- Price.
- Quantity supplied.
- Find the coefficient of price elasticity of supply.
- Is the supply elastic or elastic?
- Explain your answer in (c) (i).
- Using diagrams only, describe:
- Perfectly elastic demand.
- Perfectly inelastic demand.
If the price of commodity X increased from $5.00 to $6.00 quantity supplied increased from 75kg to 80kg.
This was the alternative data response question to question (1) and was attempted by most of the candidates, majority of whom scored above average marks.
The question required candidates to calculate the percentage change in price, quantity and price elasticity of a commodity in the (a) and (b) of the question and to describe using diagrams only a perfectly elastic and inelastic demand.
Most of the candidates did very in their calculations but only few of them could draw the appropriate diagrams in the (d) part of the question.
This made few of them to lose some marks.The candidates were expected to provide the following answers to obtain the maximum marks
